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The Tourism Situation in FY2016

Table of contents Part I Tourism Trends in 2016 ...... 1 Chapter 1 Global Tourism Trends ...... 1 Section 1 Global Macroeconomic Conditions ...... 1 Section 2 The Global Tourism Situation in 2016 ...... 2 Chapter 2 Tourism Trends in Japan ...... 9 Section 1 Travel to Japan ...... 9 1 Travel to Japan ...... 9 2 International Conferences and Exhibitions Held in Japan ...... 16 Section 2 Trends in Japanese Overseas Travel ...... 21 Section 3 Trends in Domestic Trips ...... 23 Section 4 Trends in Overnight Trips ...... 24 Section 5 Recovery from the Great East Japan Earthquake ...... 28 1 Guest Nights of Japanese at Tourist-oriented Accommodations ...... 28 2 Guest Nights of International Visitors at Tourist-oriented Accommodations ...... 29 3 Guest Nights at Business People-oriented Accommodations ...... 29 Section 6 The Tourism Situation in Regional Areas ...... 30 1 ...... 33 2 Tohoku ...... 33 3 Kanto ...... 33 4 Hokuriku-Shinetsu ...... 33 5 Chubu ...... 33 6 Kinki ...... 33 7 Chugoku...... 33 8 ...... 34 9 Kyushu ...... 34 10 Okinawa ...... 34 Section 7 Initiatives to Promote Tourism in Each Region ...... 35 1 Hokkaido ...... 35 2 Tohoku ...... 36 3 Kanto ...... 37 4 Hokuriku-Shinetsu ...... 38 5 Chubu ...... 39 6 Kinki ...... 40 7 Chugoku...... 40 8 Shikoku ...... 41 9 Kyushu ...... 42 10 Okinawa ...... 43

Part I Tourism Trends in 2016

Chapter 1 Global Tourism Trends

Section 1 Global Macroeconomic Conditions

The global economy in 2016 continued to recover moderately in the second half of the year. The reasons behind this are the effects of the Chinese government's economic policies and the economies of developed countries have turned to a slight increase from weakening. The economic situation in each region is as follows. According to the IMF (International Monetary Fund), the real economic growth rate in the in 2008 and 2009 was negative for the second consecutive year. The real economic growth rate improved by 2.5% in 2010, after that it has been in the range of plus 1.6% to 2.6%, and the economic recovery continues. Due to the influence of the strong dollar and the depreciation of crude oil, etc. since the latter half of 2014, weakening in a part of the corporate sector was seen in 2016, but these effects were almost canceled by the end of 2016. However, since the economic environment of the corporate sector was not very good, the real economic growth rate in 2016 was 1.6%, slowing down compared to the 2.6% growth rate of the previous year. In the EU (European Union), the real economic growth rate has been positive since 2013, 0.3 % to 2.3 %, and the economy has continued to recover moderately. Although the European economy in 2016 was concerned about the impact of the uncertainty of the economic environment due to the UK's withdrawal from the EU, the steady recovery in private consumption is supporting a gradual economic recovery. The real economic growth rate of the Chinese economy remained at the 7% level from 2012 to 2014, but since 2015 the real economic growth rate has slowed to the 6% level. In 2016, the Chinese economy is recovering through economic stimulus measures including an automobile tax reduction and infrastructure investment. In the 5 major countries (, , the , and Viet Nam) of ASEAN (Association of Southeast Asian Nations), the real economic growth rate was between 4.6% and 6.9%. The Indonesian economy is on a gradual recovery trend due to strong domestic demand, supported by economic stimulus measures such as investment by government infrastructure, but the Malaysian economy has been slowing its growth due to the slowdown of natural resources and the slowdown of the Chinese economy, so, as a result, the growth rate of the 5 major ASEAN countries has been flat overall. Among other emerging countries, the real economic growth rate in Latin American and Caribbean countries fell to -1.8% in 2009, but it recovered significantly to 6.1% for 2010. However, after that, the economies of these countries decelerated in recent years, falling to a growth rate of -0.6% in 2016. In the Middle East and North African countries, the real economic growth rate fell to 1.5% in 2009, but after that the economy recovered. The real economic growth rate stayed between 4.6% and 5.2% until 2012, then slightly decreased to between 2.1% and 3.1% after 2013. The economies in Sub-Saharan African countries have gradually declined since they showed a high growth rate of 7.0% in 2010, and were between 3.4 and 5.2% until 2015. The growth rate has slowed to 1.4% in 2016. (Fig. I-1)

Fig. I-1 Changes in the Real Economic Growth Rates of Major Countries and Regions (%) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Japan 2.2 -1.0 -5.5 4.7 -0.5 1.7 1.4 0.0 0.5 0.5 United States 1.8 -0.3 -2.8 2.5 1.6 2.2 1.7 2.4 2.6 1.6 EU 3.3 0.6 -4.3 2.1 1.7 -0.4 0.3 1.6 2.3 1.9 14.2 9.6 9.2 10.6 9.5 7.9 7.8 7.3 6.9 6.6 ASEAN (5 countries) 6.2 5.4 2.4 6.9 4.7 6.2 5.1 4.6 4.8 4.8 Latin Americas and the Caribbean 5.9 4.0 -1.8 6.1 4.6 3.0 2.9 1.0 0.0 -0.6 Middle East and North Africa 5.6 4.8 1.5 5.2 4.6 5.1 2.2 2.6 2.1 3.2 Sub-Saharan Africa 7.1 5.9 3.9 7.0 5.0 4.3 5.2 5.1 3.4 1.4 Source: World Economic Outlook Database ,October 2016 (IMF)

1 Section 2 The Global Tourism Situation in 2016

The UNWTO announced in January 2017 that the number of international tourist arrivals worldwide in 2016 had increased by 46 million to reach 1.24 billion, up 3.9% from the previous year. The figure decreased in 2009 due to the impact of the 2008 financial crisis, but it increased in each of the 7 subsequent years. (Fig. I-2)

Fig. I-2 Changes in the Number of International Tourist Arrivals (100 mil. people) 14.0 12.4 11.9 11.4 12.0 10.9 10.4 10.0 9.5 10.0 9.1 9.3 8.9 8.6 8.1 7.6 8.0 6.7 6.8 7.0 6.9 6.0 6.3 5.6 5.9 6.0

4.0

2.0

0.0

Source: Reference from the UNWTO

While the number of international tourist arrivals is strongly correlated with real global GDP, the number of international tourist arrivals slightly exceeded it. (Fig. I-3)

Fig. I-3 Changes in the Number of International Tourist Arrivals and Real Global GDP

(100 mil. people) (%) 13.0 220

12.0 200 11.0 180 10.0 160 9.0 140 8.0 7.0 120 6.0 100

Real global GDP (Right axis) International tourist arrivals (Left axis)

Source: References from the UNWTO and the IMF Note: Real global GDP is expressed in index numbers by using the value in 1998 as 100.

2 An announcement made by the UNWTO in January 2017 indicated that the number of international tourist arrivals in Europe has been on the increase since 2011. It increased by 12.2 million to reach 619.7 million in 2016, up 2.0% from the previous year. In 2016, the number of international tourist arrivals in the Asia-Pacific region increased to 302.9 million, an increase by 23.6 million people or 8.4% over the previous year. In the same year, the number of international tourist arrivals visiting the Americas increased by 8.2 million, or 4.3%, from the previous year to reach 200.9 million. (Fig. I-4)

Fig. I-4 The Number of International Tourist Arrivals by Region (2016) The number of international YoY change tourist arrivals YoY change (million people) (million people) Worldwide 1,235.0 46.0 3.9% Europe 619.7 12.2 2.0% Asia-Pacific region 302.9 23.6 8.4% Americas 200.9 8.2 4.3% Africa 58.2 4.4 8.1% Middle East 53.6 -2.3 -4.1%

Source: Reference from the UNWTO

While the number of international tourist arrivals in Europe have always accounted for more than half of international tourist arrivals worldwide, Europe's share has decreased or remained unchanged in the past 10 years. In contrast, Asia-Pacific's share of international tourist arrivals increased remarkably from 19.4% in 2006 to 24.5% in 2016. The Americas' share of international tourist arrivals has been around 16% since 2006. The share of the Middle East and Africa has been around 5%. (Fig. I-5)

Fig. I-5 The Number of International Tourist Arrivals by Region of Origin (2006-2016)

2006 55.7% 19.4% 16.0% 4.3% 4.6%

2011 52.4% 21.9% 15.7% 5.0% 5.0%

2016 50.2% 24.5% 16.3% 4.4% 4.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Europe Asia-Pacific region Americas Middle East Africa

Source: Reference from the UNWTO

The UNWTO says that the number of international tourist arrivals will continue to rise worldwide. As mentioned above, the number of international tourist arrivals in the Asia-Pacific region has been sharply increasing in recent years. It is expected that the higher growth in the number of international tourist arrivals will continue to be higher in South Asian, Northeast Asian and Southeast Asian countries than in Europe and the Americas. (Fig. I-6)

3 Fig. I-6 Projections of Average Annual Growth Rates of the number of International Tourist Arrivals (%) 8.0 6.8 7.0 2010-2020 5.7 5.8 6.0 5.3 5.2 5.4 2020-2030 4.6 5.0 4.2 4.3 4.0 3.8 4.0 2.9 2.7 2.9 3.0 2.2 1.8 2.0 1.0 0.0 M E S A N S W A o o u f o m i o r u u r d r i o r e t t t c d l h h h r p d a l i

- - e e c w A E E

a E a i a s s d i s s a a e t t s

t A A s s i i a a

Source: Reference from the UNWTO

4 Statistical standards used for calculating the number of international visitors differ from country to country and from region to region. Thus, the differences in the statistical standards applied for calculation should be taken into account in comparing data on international visitors. In terms of the number of international visitors, France ranked 1st with 84.45 million arrivals in 2015 for the second consecutive year, followed by the United States (77.51 million) and Spain (68.22 million). The number of international visitors to Japan increased to 19.74 million (16th place, 5th in Asia) from 13.41 million (22nd place, 7th in Asia) in 2014, which rose both in number and ranking. The number of international visitors to Japan increased to 24.04 million in 2016, up 21.8% from the previous year. This number is the 15th greatest in the ranking of the number of international visitors by country in 2015. (Fig. I-7)

Fig. I-7 The Ranking of the Number of International Visitors by Country/Region (2015) (10,000 people) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 France 8,445 U.S.A. 7,751 Spain 6,822 China 5,689 Italy 5,073 Turkey 3,948 Germany 3,497 U.K. 3,444 Mexico 3,209 3,135 Thailand 2,988 Austria 2,672 2,669 Malaysia 2,572 (Japan) 2,404 24.04 million international visitors Greece 2,360 came to Japan in 2016. Japan 1,974 Saudi Arabia 1,799 Canada 1,797 Poland 1,673 Japan ranked 16th in the world and 5th Netherlands 1,501 in Asia. Hungary 1,432 Macau 1,431 South 1,323 Croatia 1,268 Ukraine 1,243 The number of international visitors is 1,205 Czech Republic 1,115 calculated and published by different ★Sweden (1,052) statistical standards for each country and 1,044 region. Therefore, it is necessary to note the Indonesia 1,041 ★Denmark (1,027) difference of the statistical criteria of each Morocco 1,018 country when strictly comparing. (For 1,018 example, the number of foreign crew ★U.A.E. (999) Switzerland 931 members is not included in Japanese Egypt 914 statistics, but it is included in the statistics of South Africa 890 France, Spain, China, , etc. ★Ireland (881) Belgium 803 India 803

Source: JNTO (Japan National Tourism Organization) document based on the data of the UNWTO and national tourism offices Notes: 1. Numbers shown above are provisional values as of July 2016. 2. Sweden, Denmark and Ireland used figures in 2014 because the figures in 2015 are unknown. For the U.A.E., we used the figures for 2013. (marked with ★). 3. Except for South Korea, Japan, Taiwan and Viet Nam, the number of international visitors means the number of international visitors who stayed at least one night in the country/region they visited. 4. Rankings are subject to change depending on the timing of data collection, because data may be updated or modified from time to time. 5. Statistical standards used for calculating the number of international visitors differ from country to country and from region to region. Thus, the differences in the statistical standards applied for calculation should be taken into account in comparing data (For example, the number of foreign crew members is not included in Japanese statistics, but it is included in the statistics in France, Spain, China, South Korea, etc. ).

5 Because Japan is an island country, visitors from overseas come to Japan only by air or sea. Other countries in Europe, for example, are accessible by land, and many visitors travel to these countries by rail or car. Thus, for the of comparison, Figure I-8 shows the number of international visitors by country for visitors traveling by air or sea. In 2015, Spain ranked first with 55.4 million visitors from overseas, followed by the United States (47.97 million) and Turkey (33.41 million). Japan had 19.74 million international visitors (9th in the world and 3rd in Asia), ranking higher than in 2014, when the figure was 13.41 million (14th in the world and 6th in Asia). In 2016, the number of international visitors who traveled to Japan by air or sea was 24.04 million. This number is the 8th greatest in the ranking of the number of international visitors by air or sea in 2015. Note that countries and regions for which the numbers of international visitors traveling by air or sea are not known are excluded from the ranking.

Fig. I-8 The Ranking of the Number of International Visitors by Air or Sea (2015) (10,000 people) 0 1,000 2,000 3,000 4,000 5,000 6,000 Spain 5,540 U.S.A. 4,797 ★Turkey 3,341 France 3,193 ★U.K. 3,149 24.04 million international ★Italy 2,972 ★China 2,555 visitors came to Japan in (★Japan) 2,404 2016. (All international Thailand 2,221 visitors to Japan visit by air or ★Japan 1,974 ★Hong Kong 1,793 sea.) Greece 1,561 Mexico 1,525 Japan ranked 9th in the world and 3rd in Asia. ★Macau 1,350 ★Singapore 1,343 The ranking includes only the countries and South Korea 1,323 regions where the number of international Saudi Arabia 1,202 ★Sweden 1,154 visitors is calculated and published for each ★Taiwan 1,044 mode of transportation (i.e., by air, sea or ★Indonesia 1,008 land). Canada 913 ★Russia 894 Morocco 889 ★Egypt 862 Malaysia 842 Ireland 775 ★Viet Nam 644 Poland 504 ★Croatia 456 ★Hungary 441 South Africa 254 ★Ukraine 145 Germany Austria Netherlands U.A.E. Czech Republic no data Switzerland Portugal Belgium Denmark

Source: Reference from the UNWTO Notes: 1. International visitors are calculated and published according to different statistical criteria for each country and region, so careful comparison is required. 2. Numbers shown above are provisional values as of March 2017. 3. Except for the countries/regions marked with ★, the number of international visitors means the number of international visitors who had at least an overnight stay in the country/region they visited. 4. Green in the graph is a country/region belonging to Asia. 5. In Thailand and Sweden, figures for 2015 are unknown. Therefore, we used figures for 2013 for Thailand and 2014 for Sweden. 6. The numerical values adopted in the graph are the number of international visitors excluding land transportation (entry by car etc.) among the means of transportation of air, sea and land. 7. The number of international visitors by air or sea is unknown for Germany, Austria, the Netherlands, the U.A.E., Czech Republic, Switzerland, Portugal, Belgium and Denmark because data on the means of transportation used by international visitors are unavailable. 8. Rankings are subject to change depending on the timing of data collection, because data may be updated or modified from time to time.

6 In the ranking of receipts by country/region in 2015, 1st place was the United States at $204.5 billion, 2nd place was China at $114.1 billion, and 3rd place was Spain at $56.5 billion. In 2014, China was 3rd at $56.9 billion, but Spain greatly surpassed it, and the 2nd and 3rd positions were replaced. In addition, Thailand increased its position from 9th to 6th. Japan's international tourism receipts increased to $25.0 billion (13th in the world and 5th in Asia) in 2015 from $18.9 billion (17th in the world and 8th in Asia) in 2014. Among Asian countries alone, China's international tourism receipts ranked 1st in 2014 for the second consecutive year. Japan's international tourism receipts in 2016 were $30.7 billion. This amount is the 11th largest in the ranking of international tourism receipts in 2015. (Fig. I-9)

Fig. I-9 The Ranking of International Tourism Receipts by Country/Region (2015) (100 mil USD) 0 500 1,000 1,500 2,000 2,500 U.S.A. 2,045 China 1,141 Spain 565 France 459 U.K. 455 Thailand 446 Italy 394 Germany 369 Hong Kong 362 Macau 313 (Japan) 307 $30.7 billion in 2016 294 Turkey 266 Japan ranks 13th in the world Japan 250 India 210 and 5th in Asia. Austria 183 Mexico 177 Malaysia 176 Singapore 167 Canada 162 Switzerland 162 U.A.E. 160 Greece 157 South Korea 153 Taiwan 144 Netherlands 132 Sweden 122 Belgium 117 Indonesia 108 Saudi Arabia 101 Poland 97 New Zealand 89 Croatia 88 Russia 85 South Africa 82 Viet Nam 73 Lebanon 69 Denmark 66 Dominican Republic 61 Egypt 61 Czech Republic 60

Source: JNTO document based on data from the UNWTO and the national tourism office from each country. Notes: 1. Numbers shown above are provisional values as of May 2016. 2. International tourism receipts don’t include international passenger fares. 3. Data on international tourism receipts may be updated or modified from time to time. Calculated values of international tourism receipts are affected by changes in the exchange rates of foreign currencies to the U.S. dollar. Thus, rankings are subject to change depending on the timing of data collection.

7 In the ranking of international tourism expenditures by country/region in 2015, China ranked 1st for the 2nd straight year, with $292.2 billion. The United States ranked 2nd, with $120.5 billion, and Germany ranked 3rd for the second year in a row, with $76.3 billion. The Japan was at $16 billion (19th in the world and 5th in Asia), and decreased from $19.3 billion in 2014 (17th in the world and 5th in Asia), both in terms of amount and rank. In 2016, Japan's international tourism expenditures were $18.5 billion. This amount is the 15th largest in the ranking of international tourism expenditures in 2015. (Fig. I-10)

Fig. I-10 The Ranking of International Tourism Expenditures by Country/Region (2015) (100 mil. USD)

0 500 1,000 1,500 2,000 2,500 3,000 3,500 China 2,922 U.S.A. 1,205 Germany 763 U.K. 635 France 384 Russia 349 Canada 293 South Korea 250 Italy 245 Australia 235 Hong Kong 229 Singapore 221 Saudi Arabia 207 Belgium 187 (Japan) 185 $18.5 billion in 2016 Netherlands 182 Spain 178 Brazil 174 Sweden 169 Japan 160 Japan ranks 19th in the Switzerland 160 world and 5th in Asia Norway 158 Taiwan 155 India 149 Philippines 117 Malaysia 105 Mexico 101 Poland 95 Austria 90 Denmark 87 Thailand 76 Indonesia 73 Argentina 59 Turkey 54 Ireland 54 Czech Republic 49 Israel 48 Finland 47 Portugal 40 New Zealand 37 South Africa 30

Source: JNTO document based on data of the UNWTO and national tourism offices from each country. Notes: 1. Numbers shown above are provisional values as of May 2016. 2. Because Poland’s figures for 2015 are unknown, figures for 2014 were used. 3. International tourism expenditures don’t include international passenger fares. 4. Data on international tourism expenditures may be updated or modified from time to time. Calculated values of international tourism expenditures are affected by changes in the exchange rates of foreign currencies to the U.S. dollar. Thus, rankings are subject to change depending on the timing of data collection.

8 Chapter 2 Tourism Trends in Japan

According to “The Japanese Economy 2016-2017,” released by the Cabinet Office in January 2017, while the employment and acquisition environments continue to improve, the Japanese economy continues its moderate recovery trend, focused on production, reflecting improvements in business conditions. Also, while personal consumption saw a downward trend due to temporary factors such as the earthquake in 2016 (hereinafter referred to as the Kumamoto earthquake) and the higher than usual number of typhoons making landfall in the summer, there has been some improvement seen since the fall of 2016. In March 2016, we began to move toward a new goal, which was discussed at the “Meeting of the Concil for a Tourism Vision to Support the Future of Japan” In May, the G7 summit was held in Ise-shima, attracting attention from the world and increasing recognition. After the summit, the President of the United States of America, Barack Obama, visited . It was the first time that an incumbent president of the United States visited a place where an atomic bomb was dropped. The transportation infrastructure in 2016 expanded in March, with the opening of the Hokkaido , connecting and in the shortest time of 4 hours and 2 minutes. In April, the country's largest highway bus terminal, “ Expressway Bus Terminal,” opened. In terms of airports, Kansai International Airport expanded with the terminal 2 building exclusively for LCCs. In January 2017, terminal 2 (international) opened, and the development of an environment for using highway buses and LCCs moved forward. On the other hand, the Kumamoto earthquake occurred in April, and there was major damage to tourist facilities such as and accommodation facilities. In August, 4 typhoons made landfall in Hokkaido and the Tohoku region, and then 2 typhoons made landfall in September, causing significant damage to the Kyushu and Shikoku regions. It was a year that many natural disasters occurred.

Section 1 Travel to Japan

1 Travel to Japan

The number of international visitors to Japan in 2016 was 24.04 million, exceeding the record of 19.74 million set in 2015, an increase of 21.8% from the previous year. It was the fourth consecutive record-setting year. (Fig. I- 11)

Fig. I-11 Changes in the Number of International Visitors to Japan

(10,000 people) 3,000

2,500 2,404

1,974 2,000

1,500 1,341 1,036 1,000 835 835 861 836 733 614 673 679 622 500

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Reference from the JNTO

9 Under this situation, out of the major 20 markets, except for Russia, 19 markets recorded the highest ever in years. The number of international visitors to Japan from Asia reached 22.8% over the previous year with 20.1 million people, and the percentage of international visitors to Japan 83.6%. Along with the growing demand for personal travel and cruises, coupled with the expansion of airline routes, the number of international visitors to Japan from China was 6.373 million people, reaching over 6 million people for the first time. Due to the impact of the Kumamoto earthquake, which occurred in April, the number of international visitors from South Korea in May decreased from the same period a year ago but after that, the number of international visitors to Japan from South Korea was 5.09 million people and exceeded 5 million people for the first time. In Taiwan, with the expansion of the LCC and other air routes, the demand for visiting Japan for personal travel has been on track, and the number of Taiwanese visitors to Japan was 4.168 million people exceeding 4 million people for the first time. The number of international visitors to Japan from Hong Kong was 1.839 million people for the year due to the expansion of air routes. Of the total number of international visitors 2.51 million people were from the 6 major countries in ASEAN (Association of Southeast Asian Nations), namely Thailand, Singapore, Malaysia, Indonesia, Philippines, Viet Nam. The number of international visitors to Japan from Europe was 1.422 million people and 729,000 people of them from the 3 major countries (United Kingdom, France, Germany). On the other hand, for Russia, overseas travel demand was sluggish due to the decline in the country's currency due to economic sanctions and the stagnation of its own economy, and the number of international visitors to Japan from Russia was at almost the same level as the previous year at 55,000 people. The number of international visitors to Japan from North America was 1.516 million people, and 1.243 million people of them were from the United States. The number of international visitors to Japan from Australia was 445,000 people and exceeded 400,000 people for the first time. In other areas, 78,000 people visited from South America and 34,000 people from Africa. (Fig. I-12)

Fig. I-12 Breakdown of the Number of International Visitors to Japan (2016) Italy Russia Spain Australia (10,000 people) 12 (0.5%) 5 (0.2%) 9 (0.4%) 45 (1.9%) Germany 18 (0.8%) Others France 98 (4.1%) 25 (1.1%) 5 Countries ①China U.K. In Europe 637 (26.5%) 29 (1.2%) ⑤U.S.A.94 (3.9%) Canada 124 (5.2%) 27 (1.1%) Northern India America 12 (0.5%) 152 (6.3%) Viet Nam 23 (1.0%) Total ⑥ Thailand Philippines 90 （3.7%） 2,404 35 (1.4%)

Indonesia ④Hong Kong 27 (1.1%) Asia 2,010 (83.6%) 184 （7.7%） East Asia 1,747 (72.7%) Malaysia Southeast Asia 251 (10.4%) 39 (1.6%)

Singapore ②South Korea ③Taiwan 36 (1.5%) 509 (21.2%) 417 (17.3%)

Source: Reference from JNTO Notes: 1. Values in parentheses indicate share as a percent of all international visitors to Japan. 2. “Others” is Asian, European or other countries/regions not otherwise shown in the pie chart.

10 The reason why the number of international visitors to Japan has increased steadily is that tourism is regarded as the pillar of Japan's economic growth strategy, and one of the main components of the regional revitalization. Other reasons include the implementation of bold initiatives that have never been done before, such as visa relaxation, consumption tax exemption for international visitors, improving the acceptance environment through multilingual notation and enhancing the CIQ system, all brought about through promotions resulting from cooperation between the Japan National Tourism Organization (JNTO) and other tourism officials. The amount of consumption in Japan by international visitors rapidly expanded from 2012 and rose 7.8% from the previous year to 3.7476 trillion yen in 2016. (Fig. I-13)

Fig. I-13 Changes in Tourism Consumption by International Visitors (100 mil. yen) 40,000 37,476 34,771 35,000

30,000 25,000 20,278 20,000 14,167 15,000 10,846 10,000 8,135 5,000

0 2011 2012 2013 2014 2015 2016 Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

Looking at the amount of consumption in Japan by international visitors in 2016 by quarter, except for the July-September quarter, the figures increased compared with the previous year. (Fig. I-14)

Fig. I-14 Quarterly Changes in Tourism Consumption by International Visitors

(100 mil. yen) (10,000 people) 12,000 700

10,000 600

500 8,000 400 6,000 300 4,000 200

2,000 100

0 0 3 6 9 2 3 6 9 2 3 6 9 2 3 6 9 2 ------1 1 1 1 1 4 7 - 1 4 7 - 1 4 7 - 1 4 7 - 0 0 0 0 1 1 1 1 2013 2014 2015 2016

Tourism consumption (left axis) Number of international visitors to Japan (right axis)

Sources: Reference from JNTO (the number of international visitors to Japan); Consumption Trend Survey for Foreigners Visiting Japan (JTA) (tourism consumption)

11 When the amount of consumption in Japan by international visitors in Japan was analyzed by country and region, China ranked first at 1.4754 trillion yen, and accounted for 39.4% of total amount in 2016. Next was Taiwan at 524.5 billion yen (14.0%), South Korea at 357.7 billion yen (9.5%), Hong Kong at 294.7 billion yen (7.9%), United States 213 billion yen (5.7%), and these top 5 countries accounted for 76.5% of the total. (Fig. I-15)

Fig. I-15 Tourism Consumption by International Visitors Broken Down by Country/Region

Indonesia Italy Spain Philippines Germany 37.0 23.6 20.6 India Russia (bil. yen) 39.0 31.3 Canada1.0% 0.6% 0.5% 17.7 10.5 1.0% 0.8% 42.3 0.5% 0.3% Viet Nam 1.1% 43.5 1.2% Others Malaysia France 179.4 52.2 47.9 4.8% 1.4% 1.3% U.K. 53.2 1.4% China Singapore 1,475.4 59.1 Australia 39.4% 1.6% 2016 109.9 Thailand 2.9% 115.0 U.S.A Tourism Consumption 3.1% 213.0 by international visitors 5.7% 3.7476 tril. yen Hong Kong 294.7 7.9% South Korea 357.7 Taiwan 9.5% 524.5 14.0%

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

The expense item “shopping” accounted for a greater share of all expense items for international visitors in 2016 (38.1%) than it did in 2015 (41.8%) . On the other hand, the rate of accommodation, food and beverage, and transportation expenses increased in comparison. (Fig. I-16)

Fig. I-16 Tourism Consumption by International Visitors by Expense Item 0% 20% 40% 60% 80% 100%

25.8% 18.5% 10.6% 3.0% 41.8% 0.3% 2015 (8,974) (6,420) (3,678)(1,058) (14,539) (102)

27.1% 20.2% 11.4% 3.0% 38.1% 0.2% 2016 (10,140) (7,574) (4,288) (1,136) (14,261) (77)

Accommodation Food and beverage Transportation Entertainment Shopping Others

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA) Note: Figures indicate the amount of spending by expense item (100 mil. yen).

12 When tourism consumption by international visitors is analyzed in terms of their countries/regions of origin and expense items, Chinese visitors’ spending rate was especially high at about 783.2 billion yen. Then visitors from Taiwan and Hong Kong followed, with each group of visitors spending over 100 billion yen. (Fig. I-17)

Fig. I-17 Tourism Consumption by International Visitors by Country/Region and Expense Item (2016) Tourism consumption by international visitors (100 million yen) Country/Region Total amount Accommo- Food and Transpor- Entertain- Shopping Others YoY change dation Beverage tation ment Total 37,476 +7.8% 10,140 7,574 4,288 1,136 14,261 77 South Korea 3,577 +18.9% 1,124 908 382 155 996 12 Taiwan 5,245 +0.7% 1,402 1,109 589 172 1,964 9 Hong Kong 2,947 +12.2% 763 636 319 81 1,147 1 China 14,754 +4.1% 2,812 2,482 1,269 320 7,832 39 Thailand 1,150 -4.2% 311 233 149 43 409 4 Singapore 591 +2.1% 212 126 90 12 146 5 Malaysia 522 +13.6% 162 109 78 14 158 0 Indonesia 370 +22.7% 128 61 74 14 94 0 Philippines 390 +14.9% 115 92 47 17 119 0 Viet Nam 435 +20.5% 115 127 46 10 138 0 India 177 +16.1% 75 34 24 3 41 0 U.K. 532 -2.4% 234 121 88 19 70 0 Germany 313 +12.7% 145 68 54 9 37 0 France 479 +6.8% 191 103 88 20 77 0 Italy 236 +13.2% 94 54 46 11 31 0 Spain 206 +17.3% 85 45 41 6 29 0 Russia 105 +5.5% 34 17 12 4 36 2 U.S.A. 2,130 +17.4% 879 511 346 67 324 2 Canada 423 +7.2% 151 99 78 14 80 1 Australia 1,099 +26.3% 444 228 179 80 167 1 Others 1,794 +17.5% 663 410 290 64 366 0

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

13 According to the category of travel expenditure per person for international visitors to Japan in 2016, the amount spent on shopping was the highest at 59,323 yen, followed by accommodation (42,182 yen), and food and beverage expenses (31,508 yen). According to country and region, the countries with the highest spending rates were Australia, Spain, the United Kingdom, Germany, Italy and other Western countries. In the shopping section, however, China reached 122,895 yen and continued to be the highest as in the previous year. (Fig. I-18)

Fig. I-18 Tourism Consumption by International Visitors Per Person by Country/Region (2016) Tourism consumption by international visitors per person (yen/person) Country/Region Total amount Accommo- Food and Transpor- Entertain- Shopping Others YoY change dation Beverage tation ment Total 155,896 -11.5% 42,182 31,508 17,838 4,725 59,323 320 South Korea 70,281 -6.5% 22,090 17,847 7,505 3,042 19,562 234 Taiwan 125,854 -11.1% 33,634 26,611 14,126 4,137 47,122 224 Hong Kong 160,230 -7.0% 41,501 34,570 17,328 4,412 62,389 29 China 231,504 -18.4% 44,126 38,943 19,917 5,014 122,895 609 Thailand 127,583 -15.3% 34,532 25,858 16,529 4,821 45,414 430 Singapore 163,210 -12.9% 58,462 34,903 24,891 3,242 40,428 1,285 Malaysia 132,353 -12.0% 41,047 27,753 19,799 3,671 40,023 60 Indonesia 136,619 -7.2% 47,117 22,586 27,171 5,051 34,665 28 Philippines 112,228 -11.3% 33,192 26,505 13,419 4,959 34,093 59 Viet Nam 186,138 -4.5% 49,314 54,182 19,556 4,125 58,883 77 India 144,275 -2.7% 61,354 27,379 19,713 2,784 32,971 74 U.K. 181,795 -13.7% 80,131 41,220 30,011 6,408 24,000 24 Germany 171,009 -0.0% 78,849 36,899 29,715 5,068 20,350 128 France 189,006 -9.7% 75,462 40,799 34,590 7,830 30,299 26 Italy 198,000 -2.0% 78,597 45,299 38,900 9,315 25,596 293 Spain 224,072 -1.4% 92,211 49,103 44,168 6,482 32,052 57 Russia 190,874 +4.6% 61,845 31,004 21,812 7,258 64,889 4,067 U.S.A. 171,418 -2.4% 70,707 41,137 27,856 5,427 26,111 180 Canada 154,977 -9.2% 55,366 36,319 28,509 5,184 29,326 273 Australia 246,866 +6.7% 99,802 51,202 40,169 17,957 37,587 150 Others 183,083 +2.8% 67,698 41,889 29,633 6,505 37,333 24

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

14 Against the backdrop of this favorable situation of international tourism and tourism consumption in Japan, the balance of international payments for tourism has improved. In 2015, Japan hadresulted in a total annual payments surplus (1.0902 trillion yen) for the first time as a calendar year in the 53 years since 1962. In 2016, the surplus in the travel balance increased further, reaching 1.3266 trillion yen. (Fig. I-19)

Fig. I-19 Changes in International Tourism Balance of Payments in Japan

International (100 million yen) tourism balance (10,000 people) year of payments The number of international visitors to Japan exceeded 230 230 (100 million) 2,400 that of Japanese overseas travelers for the first time in 214 208 205 221 the 44 years since September 1970 (In: 7.9; Out: 5.1). 201 199 205 189 192 204 1996 ▲ 35,880 2,200 192 185 178 182 183 182 200 176 177 188 174.0 1997 ▲ 34,651 164 161 165 2,000 160 155 189 1998 ▲ 32,739 153.4 155 148 149 1,800 139 135 143 165 133 130 150 125 124 125 1999 ▲ 33,287 123 152.6 126 119 153 123.3127 146 146 1,600 114 141 111 131 134 2000 ▲ 30,730 128 1570 122 126 1513 2001 ▲ 28,168 1,400 119 100 1359 94 1343 1321 2002 ▲ 28,879 1,200 1249 1274 1153 1174 2003 ▲ 23,190 1,000 On a single-month basis, the net balance was 1043 1056 1065 1068 1026 1049 897 50 1000 positive for the first time in the 44 years since 788 2004 ▲ 29,189 800 July 1970 (surplus of $1 mil.). 900 790 820 751 773 2005 ▲ 27,659 600 752 633 0 2006 ▲ 21,409 560 400 2007 ▲ 20,199 413 440 200 ▲ -50 2008 17,631 2014 2015 2016 2017 0 2009 ▲ 13,886 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 2010 ▲ 12,875 -200 -100 -236 2011 ▲ 12,963 -400 -482 The net balance was positive in 2015 for the first As a calendar year, 2016 had the largest ever time in the 53 years since 1962. surplus of 1,326 trillion yen. 2012 ▲ 10,617 -600 -150 2013 ▲ 6,545 -800 The net balance was positive in FY2014 for the first In FY2016, when viewed as a fiscal year, it is 2014 ▲ 444 -1,000 time in the 55 years since 1959. the largest surplus ever at 1,278.9 trillion yen. -200 2015 10,905 International tourism balance Number of International Visitors to Japan Number of Ovearseas Travelers 2016 13,266 of payments

Sources: 1. Balance of International Payments (Ministry of Finance) 2. Number of International Visitors to Japan (JNTO, Japan National Tourism Organization) 3. Statistical Survey on Legal Migrants (Ministry of Justice) Notes: 1. The figures for the international tourism balance of payments in Japan between January 2014 and December 2015 are final figures. 2. Each figure for each month is rounded off to the nearest whole number. Totals may not be exact to the last digit.

15 2 International Conferences and Exhibitions Held in Japan (1) International conferences

According to statistics compiled by the ICCA (International Congress and Convention Association), an international association of organizations and companies specializing in businesses related to international meetings, the number of international conferences held worldwide is on the rise. About half of all international conferences held in 2015 were held in Europe, where many international institutions and academic societies are headquartered. However, the number of international conferences held in the Middle East and Asia is rapidly growing because of the high economic growth rate in these regions. (Fig. I-20)

Fig. I-20 Change in the Number of International Conferences Worldwide and by Region 13,000 12,000 Others 11,000 1,186 1,135 10,000 1,063 1,226 1,170 Middle 1,113 1,176 1,403 9,000 950 1,021 1,277 1,417 East 869 1,346 1,335 1,269 1,261 Africa 8,000 1,312 1,293 1,184 1,993 2,226 7,000 1,975 1,748 1,874 1,988 1,908 Oceania 1,779 1,768 6,000 1,665 Latin 5,000 America 4,000 North 3,000 6,049 6,088 6,020 6,310 6,322 6,579 6,551 America 5,192 5,616 5,730 Asia 2,000 1,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sources: ICCA (A Modern History of International Association Meetings 1963-2012) (May 2017),ICCA Statistics Report (2013, 2014, 2015,2016) (May 2017) Note: For the conferences organized as “others” in the report, the number of events held was less than 4 and region classification is impossible, so we do not classify the area.

ICCA statistics show that Japan hosted 410 international conferences in 2016, the seventh-most of any country in the world. (Fig. I-21)

Fig I-21 Breakdown of the Number of International Conferences by Host Country (2016) Rank Country Number 1 U.S.A. 934 2 Germany 689 3 U.K. 582 4 France 545 5 Spain 533 6 Italy 468 7 Japan 410 7 China 410 9 Netherlands 368 10 Canada 287 10 Portugal 287 12 Austria 268 13 South Korea 267 14 Sweden 260 15 Brazil 244

Source: ICCA Statistics Report (2016) (May, 2017)

16 Looking at the number of international conferences held in Asia and the Pacific region by country, in recent years the number of events held in the five major countries including Japan (Japan, China, South Korea, Singapore and Australia) has been increasing. In 2016, however, the number of events held in Korea, Australia and Singapore declined while Japan and China have increased the number of events held. (Fig. I-22) As a result, Japan's share of the total number of hosted events held by the five major countries in the region, that had been on a downward trend, was 28.3%, which was the top for five consecutive years, but the rise in the number held in China (28.3% at the same rate) means competition is getting stronger. (Fig. I-23)

Fig. I-22 Number of International Conferences in the Major Countries of the Asia and Pacific Region (1990-2016) (number) 450 400 350 300 250 200 150 100 50 0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 China Japan South Korea Australia Singapore

Sources: ICCA (A Modern History of International Association Meetings 1963-2012) (May 2017),ICCA Statistics Report (2013, 2014, 2015,2016) (May 2017) Note: Data on the number of international conferences held in 2016 will be announced in June 2017.

Fig. I-23 Changes in Japan's Share of International Conferences in the Asia and Pacific Region (1996-2016) 100% 90% Australia 14.6%

80% 10.4% Singapore 70% 60% South Korea 18.4% 50%

40% China 28.3% 30% 20% 10% Japan 28.3% 0% 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Source: ICCA (A Modern History of International Association Meetings 1963-2012) (May 2017),ICCA Statistics Report (2013, 2014, 2015,2016) (May 2017) Note: Data on the number of international conferences held in 2016 will be announced in June 2017.

17 In the “Japan Revitalization Strategy -Japan Is Back-,” approved by the Cabinet in 2013, Japan has set a goal of “establishing Japan’s position as an Asian top host nation of international conferences in 2030.” Japan needs to strengthen its ability to successfully attract international conferences in the face of increasing competition. When comparing Japan with the top major countries regarding the number of international conferences held in 2016, the number of conferences held with less than 499 people is low in Japan, but the number of conferences held with between 500 to 4,999 people has grown to about 1.7 times the number from 2015. In order to achieve our goal in the competitive Asian market, it is necessary to steadily attract small and medium-sized international conferences. In addition, although the number of large international conferences exceeding 1,000 people is not so large in the world as a whole, since the economic ripple effect is large, we must continue to attract them to Japan. (Fig. I-24)

Fig. I-24 Number of International Conferences in Major Western/Asian/Oceanian Countries According to the Number of Participants (2016)

ICCA Statistics (2016) (number) U.S.A.：1st 900 Germany：2nd U.K.：3rd 800 France: 4th Spain：5th 700 Japan:7th China：7th 600 South Korea：13th Australia：16th 500 Singapore：28th 400 300 200 100 0 U.S.A. Germany U.K. France Japan China South Australia Singapore Korea -499 people 500-999 people 1,000-4,999 people 5,000- people

Source: ICCA Statistics (May 2017)

18 (2) International exhibitions

According to an estimate made by the Global Association of the Exhibition Industry (UFI), about 31,000 exhibitions around the world used exhibition spaces of 500 m2 or larger in 2012, and the total space rented for these exhibitions was 124 million m2. The space rented for such exhibitions decreased by 8% from 2008 to 2010 and increased by 2% from 2010 to 2012. From 2008 through 2012, the space rented for exhibitions decreased by 9% in Europe and increased by 9% in the Asia-Pacific region. (Fig. I-25)

Fig. I-25 Changes in Space (at least 500 m2) Rented for Exhibitions by Region (unit: 1 mil. m2)

132.5 2008=>2010 about 8% decrease 121.8 124.5 2008 2010=>2012 about 2% increase 2010 2012

53.0 52.3 47.746.4 45.647.8

19.820.621.6

4.4 5.1 4.0 2.4 2.5 2.6 1.0 1.0 1.0

Europe Asia Pacific Latin America Middle East Africa Total North America

Source: Global Exhibition Industry Statistics (UFI, 2014)

The UFI data shows that the total exhibition space of venues with exhibition space of 5,000 m2 or larger in Japan was 340,000 m2 in 2011, the 16th greatest in the world. (Fig. I-26) The fact that 3.2 million m2 was rented for exhibitions in Japan in 2012 indicates that Japan is a major exhibition host. (Fig. I-27) This also suggests that exhibition spaces of various sizes, not only of large size, are fully utilized in Japan. Because the markets for exhibitions and trade shows in the Asia-Pacific region are strong, it is important for Japan to continue to make full use of exhibition spaces of various sizes in order to attract an increasing number of business people to exhibitions/trade shows in Japan.

19 Fig. I-26 Total Exhibition Space by Country (with exhibition space of 5,000 m2 or larger) in 2011

Rank Country Space (m2) Share 1 U.S.A. 6,712,342 20.6% 2 China 4,755,102 14.6% 3 Germany 3,377,821 10.4% 4 Italy 2,227,304 6.8% 5 France 2,094,554 6.4% 6 Spain 1,548,057 4.8% 7 Netherlands 960,530 2.9% 8 Brazil 701,882 2.2% 9 U.K. 701,857 2.2% 10 Canada 684,175 2.1% 11 Russia 566,777 1.7% 12 Switzerland 500,570 1.5% 13 Belgium 448,265 1.4% 14 Turkey 433,904 1.3% 15 Mexico 431,761 1.3% 16 Japan 345,763 1.1% 17 Austria 287,475 0.9% 18 South Korea 280,190 0.9% 19 India 278,010 0.9% 20 Poland 268,068 0.8% 21 Australia 257,990 0.8% 22 Czech Republic 252,700 0.8% 23 Greece 223,400 0.7% 24 Sweden 217,060 0.7% 25 Denmark 216,070 0.7% 26 Singapore 203,600 0.6% 27 Thailand 200,174 0.6% 28 Iran 198,980 0.6% 29 South Africa 178,432 0.5% 30 U.A.E 177,000 0.5% Others 2,839,463 8.7% Total 32,569,276 100.0% Source: The 2011 World Map of Exhibition Venues (UFI)

Fig. I-27 Spaces Rented for Exhibitions by Country in 2012

Country Space (1 mil. m2) U.S.A. 41.1 China 13.7 Germany 8.7 Italy 5.9 France 5.7 Japan 3.2 Brazil 3.0 Russia 2.9 Spain 2.8 U.K. 2.8 Source: Global Exhibition Industry Statistics (UFI, 2014)

20 Section 2 Trends in Japanese Overseas Travel

In 2016, the number of Japanese overseas travelers increased to 17.12 million people, up 5.6% from the previous year for the first time in the 4 years since 2012. (Fig. I-28)

Fig. I-28 Changes in the Number of Japanese Overseas Travelers

(10,000 people) 1,900 1,849 1,800 1,740 1,753 1,729 1,747 1,683 1,699 1,690 1,712 1,700 1,664 1,599 1,621 1,600 1,545 1,500 1,400 1,300 1,200 1,100 1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Ministry of Justice

In 2016, the number of Japanese overseas travelers was 17.12 million people, and the number of international visitors to Japan was 24.04 million people. The number of international visitors to Japan surpassed the number of Japanese overseas travelers for the second consecutive year. (Fig. I-29)

Fig. I-29 Changes in the Number of International Visitors to Japan and Japanese Overseas Travelers

(10,000 people) 2,500 Number of International Visitors to Japan Number of Japanese Overseas Travelers 2,000

1,500 In 1971, the number of Japanese departing from Japan 1,000 exceeded the number of international visitors to Japan. 500

0 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Sources: JNTO (for the number of international visitors to Japan) and the Ministry of Justice (for the number of Japanese overseas travelers)

21 In 2014, the number 1 place to visit for Japanese overseas travelers was the United States, in 2nd place was China, and South Korea was 3rd. (Fig. I-30)

Fig. I-30 Number of Japanese Visitors by Country / Region (top 5)

2011 2012 2013 2014 2015 Number of Number of Number of Number of Number of Rank Country Country Country Country Country Visitor Visitor Visitor Visitor Visitor Visited Visited Visited Visited Visited (people) (people) (people) (people) (people)

1st China 3,658,169 U.S.A. 3,698,073 U.S.A. 3,730,287 U.S.A. 3,620,224 U.S.A. 3,758,297 South South 2nd 3,289,051 3,518,792 China 2,877,533 China 2,717,600 China 2,497,700 Korea Korea South South South 3rd U.S.A. 3,249,569 China 3,518,153 2,747,750 2,280,434 1,837,782 Korea Korea Korea 4th Taiwan 1,242,652 Taiwan 1,392,557 Thailand 1,515,718 Taiwan 1,594,911 Taiwan 1,586,489

5th Thailand 1,103,073 Thailand 1,341,063 Taiwan 1,381,142 Thailand 1,254,858 Thailand 1,349,388

Source: 2011-2015 Number of Japanese Visitors by Country and Region (JNTO) Notes: 1. Data for the United States include arrivals to the 50 states and the District of Columbia as well as arrivals for the country's protectorates, including the Northern Mariana Islands, Guam, U.S Samoa, Puerto Rico and the U.S. Virgin Islands. 2. Figures for individual countries/regions may be changed retroactively, because of changes from estimated to confirmed figures, changes in statistical standards or data inconsistency. The figures are those as of April 2017.

22 Section 3 Trends in Domestic Trips

In 2016, Japanese took an average of 1.39 domestic overnight trips (excluding same-day trips) per person, up 2.9% from the previous year. The average number of nights stayed was 2.28 per person, up 0.4% from the previous year. (Fig. I-31)

Fig. I-31 Changes in the Number of Domestic Overnight Trips and Guest Nights (trips) (Guest nights) 2.0 3.0

1.9 2.25 2.28 2.5 1.8 2.08 2.14 2.06 2.27 1.7 2.0 1.6

1.5 1.5 1.39 1.39 1.35 1.35 1.4 1.30 1.26 1.0 1.3

1.2 Overnight trips per person (left) 0.5 Guest nights per person (right) 1.1

1.0 0.0 2011 2012 2013 2014 2015 2016

Source: Survey of Trends in Travel and Tourism Consumption (JTA)

The number of Japanese people who traveled domestically in 2016, excluding those who took same-day trips, was 325.66 million people, up 4.0% from the previous year. The number of Japanese who took domestic same-day trips was 315.42 million people, up 8.1% from the previous year. (Fig. I-32)

Fig. I-32 Changes in the Total Number of Domestic Same-Day Trips and Overnight Trips

(10,000 people) 35,000 34,000 32,566 33,000 32,042 31,555 32,000 31,356 31,299

31,000 31,542 29,734 30,000 31,053 29,000 29,896 29,720 29,788 29,173 28,000

27,000 Overnight trips 26,000 Same-day trips 25,000 2011 2012 2013 2014 2015 2016

Source: Survey of Trends in Travel and Tourism Consumption (JTA)

23 Japanese domestic tourism consumption increased in 2016 by 2.5% from the previous year to 20.9 trillion yen. (Fig. I-33)

Fig. I-33 Changes in Domestic Tourism Consumption 2016 (trillion yen)

25.0 20.2 20.4 20.9 19.7 19.4 20.0 18.4 4.6 4.9 5.0 4.4 4.8 4.5 15.0

10.0 15.4 15.8 16.0 14.8 15.0 13.9 5.0

0.0 2011 2012 2013 2014 2015 2016 Overnight trips Same-day trips

Source: Survey of Trends in Travel and Tourism Consumption (JTA)

Section 4 Trends in Overnight Trips

In 2016, the total number of guest nights in Japan decreased to 494.18 million, down 2.0% from the previous year. Within that, the total number of guest nights of Japanese was 423.30 million (down 3.5% from the previous year). In 2016, the inconvenient day alignment of Golden Week and Silver Week had a significant impact on the number of consecutive holidays compared to the previous year. The total number of guest nights of international visitors was 70.88 million (up 8.0% from the previous year). (Fig. I-34)

Fig. I-34 Changes in the Total Number of Guest Nights (Japanese / International Visitors) Total number of guest nights (100 mil. guest nights) total number of guest nights of international visitors total number of guest nights of Japanese 6.0 5.041 4.942 5.0 4.659 4.735 4.395 0.656 4.172 0.335 0.448 0.709 0.263 4.0 0.184

3.0

4.385 2.0 3.988 4.132 4.324 4.287 4.233

1.0

0.0 2011 2012 2013 2014 2015 2016

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. Figures for 2016 are preliminary. 2. Figures given above each bar indicate the total number of guest nights of Japanese and international visitors.

24 For international visitors alone, the year-on-year increase in the total number of guest nights was 4.8% on average in the 3 major metropolitan areas and 13.2% on average in outlying areas. In other words, the rate of increase in the average number of guest nights was significantly higher in outlying areas than in the 3 major metropolitan areas. (Fig. I-35)

Fig. I-35 Changes in Guest Nights in 3 Major Metropolitan Areas and in Outlying Areas

3 Major Metropolitan Areas Outlying Areas (10,000 guest nights) (10,000 guest nights) 4,500 4,243 2,845 4,047 +4.8% 3,000 +13.2% 4,000 2,514 2,500 3,500 3,000 2,000 2,500 1,500 2,000 1,500 1,000 1,000 500 500 0 0 2015 2016 2015 2016

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. Figures for 2016 are preliminary. 2. “3 major metropolitan areas” refers to 8 prefectures: Tokyo, Kanagawa, , , Aichi, , and Hyogo; “outlying areas” refers to all other prefectures.

The percentage of international visitors occupying the total number of guest nights was 14.3% in 2016. By accommodation type international visitors accounted for particularly large shares of the total number of guest nights at hotels. At these hotels, the percentage of international visitors increased from 13.8% in 2011 to 32.6% in 2016. About 1 in 3 guests was an international visitor. (Fig. I-36)

Fig. I-36 Changes in Share of Guest Nights for International Visitors by Accommodation Type 35.0% City hotels 32.6% Total 30.0% Resort hotels 30.8% Business hotels 25.0% Ryokans (Japanese-style inn) 25.3%

20.0% 20.4% 14.3% 17.3% 13.0% 15.0% 12.3% 13.7% 13.8% 9.5% 8.7% 12.2% 7.2% 10.0% 6.6% 10.8% 6.0% 4.7% 7.7% 4.4% 7.1% 5.0% 3.6% 6.9% 4.7% 5.3% 3.5% 4.3% 2.0% 2.9% 0.0% 1.3% 2011 2012 2013 2014 2015 2016

Source: Overnight Travel Statistics Survey (JTA) Note: Figures for 2016 are preliminary.

25 The national average for occupancy rates continually rose from 51.8% in 2011 to 60.5% in 2015. However, in 2016 the rates decreased to 60.0%. In particular, the occupancy rates of the 2 metropolitan areas of Tokyo and Osaka prefectures remained at high levels. The occupancy rates in 2016 were 79.4% in Tokyo and 84.1% in Osaka. (Fig. I- 37)

Fig. I-37 Changes in Room Occupancy Rates

100% 84.1% Osaka 90% 80% Tokyo 70% 79.4% 60% 60.0% National average 50% 40% 30% 20% 10% 0% 2011 2012 2013 2014 2015 2016

Source: Overnight Travel Statistics Survey (JTA) Note: Figures for 2016 are preliminary.

The occupancy rates by accommodation type, specifically city hotels and business hotels, were high. The occupancy rate for city hotels was 78.7% and for business hotels it was 74.4%. Ryokans had a relatively low rate, but in recent years the rate is increasing. (Fig. I-38)

Fig. I-38 Changes in Room Occupancy Rates by Accommodation Type (%) 90.0 75.7 77.3 79.2 78.7 80.0 72.5 67.1 74.4 70.0 74.2 69.5 72.1 6… 67.3 57.4 60.0 60.0 62.3 54.8 55.2 51.8 57.3 50.0 56.0 52.3 54.0 46.8 48.0 40.0 37.9 30.0 34.7 35.5 37.0 33.4 35.2 20.0 10.0 0.0 2011 2012 2013 2014 2015 2016 City hotels Business hotels Total Resort hotels Ryokans (Japanese-style inn)

Source: Overnight Travel Statistics Survey (JTA) Note: Figures for 2016 are preliminary.

26 In addition, in the prefectures which had room occupancy rates of over 80%, city hotels were the highest in 11 prefectures (2015: 11), business hotels in 4, (2015: 5) and resort hotels in 2 (2015: 2). (Fig. I-39)

Fig. I-39 Room Occupancy Rates in 2016 by Prefecture/Accommodation Type

Accommodation Type Ryokans Business Total (Japanese- Resort hotels City hotels Simple lodging hotels style inn) Nation average 60.0 37.9 57.3 74.4 78.7 25.8 Hokkaido 62.0 47.4 50.8 71.7 76.8 40.0 51.3 37.0 39.4 65.2 60.0 21.2 Iwate 52.8 39.0 40.8 71.5 67.5 27.2 Miyagi 60.6 43.9 43.3 73.3 70.8 35.5 44.1 33.0 21.0 60.2 65.8 15.6 Yamagata 47.5 35.2 26.7 68.1 66.7 7.9 50.1 36.8 44.0 76.9 70.7 10.1 Ibaraki 52.4 28.1 56.0 62.4 70.1 5.5 Tochigi 50.5 42.1 53.9 67.7 62.5 14.5 Gunma 51.2 44.7 45.8 69.0 64.7 12.7 Saitama 65.8 27.4 32.1 75.0 80.9 27.3 Chiba 68.4 34.6 82.5 70.7 80.6 19.3 Tokyo 79.4 62.0 76.4 83.5 80.8 55.2 Kanagawa 67.9 47.5 69.7 80.3 82.1 42.8 40.9 23.7 31.1 64.6 67.8 29.7 50.5 35.4 47.3 70.3 66.6 16.4 Ishikawa 64.2 54.1 53.3 75.9 80.3 20.2 41.0 26.5 41.8 68.2 56.4 10.3 Yamanashi 45.4 37.2 56.9 68.4 58.1 18.4 35.5 26.3 36.4 69.5 72.1 11.4 50.3 40.7 55.7 73.7 72.7 15.8 54.4 43.2 53.2 71.8 72.5 17.3 Aichi 70.3 32.4 55.3 77.0 80.3 45.2 Mie 55.0 36.4 51.5 68.4 70.6 9.6 Shiga 56.8 44.8 55.1 70.7 74.1 18.9 Kyoto 70.9 46.5 53.7 84.6 87.6 33.5 Osaka 84.1 47.7 89.3 85.4 87.9 64.9 Hyogo 57.7 39.5 53.2 78.8 76.7 15.5 45.5 31.0 73.6 67.1 76.8 16.5 46.4 35.8 55.1 67.5 67.5 23.3 49.3 35.8 25.5 73.7 72.8 16.1 Shimane 56.3 42.5 40.9 73.7 68.4 12.5 56.7 32.2 45.0 73.2 70.0 20.3 Hiroshima 65.6 39.3 54.4 78.7 82.0 36.3 57.3 40.5 52.6 66.5 67.0 13.5 49.0 23.8 58.5 66.4 63.8 13.7 Kagawa 58.9 40.6 67.9 67.1 64.7 32.0 Ehime 52.3 41.2 56.5 65.5 70.7 12.9 Kochi 46.9 31.2 47.0 69.2 72.2 15.0 70.9 29.3 63.6 76.3 81.7 27.0 Saga 57.9 43.5 64.8 69.0 61.3 19.3 53.7 35.1 55.9 67.8 67.4 19.7 Kumamoto 58.0 46.6 44.0 73.4 70.5 17.8 Oita 52.5 39.7 59.9 66.8 66.2 7.4 51.3 36.8 42.0 64.1 58.8 12.1 51.5 35.7 40.8 69.0 63.8 17.3 Okinawa 67.3 7.6 76.6 76.7 81.1 31.8

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. Figures in red indicate the prefectures with the highest room occupancy rates in Japan for each accommodation type. The blue-highlighted cells indicate room occupancy rates exceeding 80%. 2. Figures for 2016 are preliminary.

27 Section 5 Recovery from the Great East Japan Earthquake

To show the progress of recovery from the Great East Japan Earthquake, the total numbers of guest nights before versus after the earthquake are given below. The total number of guest nights is indexed to 2010 (=100), the year before the earthquake, and the figures are shown for the following: the national average, all 6 prefectures in the Tohoku region (Aomori, Iwate, Miyagi, Akita, Yamagata and Fukushima), all 3 prefectures where earthquake damage was particularly significant (Iwate, Miyagi and Fukushima), and each of the individual 6 prefectures in the Tohoku region.

1 Guest Nights of Japanese at Tourist-oriented Accommodations The figure for the “national average of the total number of guest nights of Japanese at tourist-oriented accommodations” (i.e., accommodations used chiefly by tourists) decreased to an index value of 95.1 in 2011, but the figure recovered to an index value of 99.0 in 2012. In the years since 2012, the figure has been above the level of 2010, the year before the Great East Japan Earthquake. For the Tohoku region and all 3 prefectures where earthquake damage was particularly significant (Iwate, Miyagi and Fukushima), however, the figure for the “total number of guest nights of Japanese at tourist-oriented accommodations” (“the total figure”) decreased to a level between the index values of 80 and 90 in 2011. Even in 2016, the total figure remained in the index value range of the lower 80s: 83.6 for the Tohoku region and 83.0 for all 3 prefectures where earthquake damage was particularly significant. (Fig. I-40)

Fig. I-40 Total Number of Guest Nights of Japanese at Tourist-Oriented Accommodations (indexed: 2010 figures = 100)

110.0 110.0

105.0 105.0

100.0 100.0

95.0 95.0

90.0 90.0

85.0 85.0

80.0 80.0

75.0 75.0

70.0 National average 70.0 65.0 Tohoku in total 65.0 Aomori Iwate Miyagi 3 prefectures in total Akita Yamagata Fukushima 60.0 60.0 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The surveyed accommodations are those that employ at least 10 staff and that have at least 50% of overnight guests staying for tourism. 2. Figures for 2016 are preliminary.

28 2 Guest Nights of International Visitors at Tourist-oriented Accommodations The figure for the “national average of the total number of guest nights of international visitors at tourist- oriented accommodations” significantly decreased to the index value of 60.5 in 2011, but it has increased sharply since 2012 to reach a level much higher than in 2010, the year before the Great East Japan Earthquake. It stood at an index value of 272.1 in 2016. For the Tohoku region and in all 3 prefectures where earthquake damage was particularly significant, the figure for the total number of guest nights of international visitors at tourist-oriented accommodations (“the total figure”) decreased to the index values of 32.0 and 26.4, respectively, in 2011. Since 2012, the total figure has been on an upward trend, having increased in 2016 to an index value of 110.2 in the Tohoku region and to an index value of 88.8 in all 3 prefectures where earthquake damage was particularly significant. (Fig. I-41)

Fig. I-41 Number of Guest Nights of International Visitors at Tourist-Oriented Accommodations (indexed: 2010 figures = 100)

300.0 300.0 National average Aomori Iwate Tohoku in total Miyagi Akita 250.0 3 prefectures in total 250.0 Yamagata Fukushima

200.0 200.0

150.0 150.0

100.0 100.0

50.0 50.0

0.0 0.0 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The surveyed accommodations are those that employ at least 10 staff and that have at least 50% of overnight guests staying for tourism. 2. Figures for 2016 are preliminary.

3 Guest Nights at Business People-oriented Accommodations The figure for the “national average of the total number of guest nights at business people-oriented accommodations” (the total number is indexed to 2010 (=100)) has steadily increased since 2010, and it increased to the index value of 125.9 in 2015, but decreased slightly to 123.9 in 2016. In the Tohoku region and in all 3 prefectures where earthquake damage was particularly significant, the figure for the total number of guest nights at business people-oriented accommodations (“the total figure”) rose significantly in 2011, followed by a downward trend, and in 2015, the total figure rose to 138.8 and 161.9 respectively, but in 2016, 136.2 and 159.3 respectively, a slight decrease from the previous year. (Fig. I-42)

29 Fig. I-42 Total Number of Guest Nights at Business People-Oriented Accommodations (index: 2010 figures = 100)

170.0 170.0 Aomori Iwate 160.0 160.0 Miyagi Akita Yamagata Fukushima 150.0 150.0

140.0 140.0

130.0 130.0

120.0 120.0

110.0 110.0 National average 100.0 Tohoku in total 100.0 3 prefectures in total 90.0 90.0 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The surveyed accommodations are those that employ at least 10 staff and that have less than 50% of overnight guests staying for tourism. 2. Figures for 2016 are preliminary.

Section 6 The Tourism Situation in Regional Areas

The total number of guest nights in Japan was 494.18 million in 2016, down 2.0% from the previous year. The regional blocks are as follows: 135.51 million in the Kanto region (accounting for 27.4% of all guest nights in Japan), 74.83 million in the Kinki region (15.1%), and 57.84 million in the Chubu region (11.7%). These top 3 regions accounted for 54.3% of all guest nights in Japan. In the Hokkaido region, the total number of guest nights has been increasing since 2011. (Fig. I-43)

Fig. I-43 Total Number of Guest Nights in Japan by Regional Blocks

(10,000 guest nights) 16,000 13,551 14,000 12,000 10,000 7,483 8,000 5,784 6,000 5,144 3,995 3,973 3,448 4,000 2,544 2,220 2,000 1,276 0 Kanto Kinki Chubu Kyushu Hokuriku Tohoku Hokkaido Chugoku Okinawa Shikoku Shinetsu 2012 2013 2014 2015 2016

Source: Overnight Travel Statistics Survey (JTA) Note: Figures for 2016 are preliminary.

30 The total number of guest nights of international visitors in Japan was 70.88 million in 2016, up 8.0% from the previous year. The regional blocks are as follows: 25.99 million in the Kanto region (accounting for 36.7% of the total), 17.45 million in the Kinki region (24.6%). These top 2 regions accounted for 61.3% of all guest nights for international visitors to Japan. In 9 of the 10 regions, except for the Chubu region, the total number of guest nights of international visitors has been increasing since 2011. (Fig. I-44)

Fig. I-44 Total Number of Guest Nights of International Visitors in Japan by Regional Blocks

Source: Overnight Travel Statistics Survey (JTA) Note: Figures for 2016 are preliminary.

Regarding the total number of guest nights by regional blocks in 2016, the number increased in the Hokkaido and Okinawa regions compared to the previous year. In addition, the total number of guest nights of international visitors has grown in 9 of the 10 prefectures, and the growth rate of the Shikoku region was especially high. (Fig. I- 45)

Fig. I-45 YoY Changes of the Total Number of Guest Nights (Overall/International Visitors) in Japan by Regional Blocks (2016)

Source: Overnight Travel Statistics Survey (JTA) Note: Comparison was made between the figures of 2015 (confirmed) and 2016 (preliminary).

31 As for the total number of guest nights of international visitors by regional blocks in 2016, the number of visitors from China was high in the 3 major metropolitan areas in 4 regions, and the number of visitors from South Korea was the highest in 2 regions, mainly in Kyushu, and visitors from Taiwan occupied the highest proportion in the remaining 4 regions. (Fig. I-46)

Fig. I-46 Regional Blocks Breakdown for the Total Number of Guest Nights of International Visitors by Country/Region (2016)

Source: Overnight Travel Statistics Survey (JTA) Note: “Europe” refers to the United Kingdom, France and Germany.

32 Analysis results regarding the trends in each region are summarized as follows:

1 Hokkaido Due to new international routes and an increase in the number of flights, the total number of guest nights of international visitors has increased, with especially sharp increases in visitors from South Korea and Malaysia. In addition to the growth of international visitors, the total number of guest nights increased as a result of the increase in domestic overnight guests due to the opening of the Hokkaido Shinkansen in March 2016.

2 Tohoku The total number of guest nights of international visitors to Tohoku in 2016 was at a record high. One of the reasons is that a goal of 1.5 million international visitors to Tohoku in 2020 was set and, in cooperation with each prefecture, municipality, and various tourism related organizations, efforts were made by the public and private sectors to promote and disseminate information. The second factor is the opening of new overseas routes to airport. Taiwan continued to have the highest number of overnight guests, and the growth rates in the number of visitors from China, Hong Kong and Thailand were higher compared to the previous year. In comparison with 2010, before the earthquake, the growth rates of visitors from Thailand, Australia, China, and Malaysia were remarkable. On the other hand, the total number of guest nights declined due to the decrease in the total number of guest nights of Japanese.

3 Kanto The total number of guest nights of international visitors increased. Reasons such as the increase in the number of business customers visiting the metropolitan area to attend MICE, such as large international conferences and events, and factors such as new international routes and more flights to the metropolitan airports are given. On the other hand, the total number of guest nights decreased due to the decrease in Japanese overnight guests. The main reason is the difficulty of taking days off because of the arrangement of the holidays. A typhoon making landfall in the metropolitan area and the lack of snow during the ski season are also considered factors.

4 Hokuriku-Shinetsu The number of guest nights of international visitors is increasing every year with international tourists who enjoy skiing and snow play. Other factors include the enhancement of secondary transportation by tour routes, such as the “Osaka-Tokyo Hokuriku Arch Pass” (train) and the “Three-star Route Ticket” (bus), as well as a shift in travel patterns to individual travel and the overall increase in the number of international visitors. As it was the 2nd year since the opening of the extension, the total number of guest nights decreased because the novelty effect of the opening wore off, but the number increased by 3.7% compared with 2015, before the opening of the extension.

5 Chubu The total number of guest nights of international visitors increased in the first half of the year, with the effects of the media surrounding the G7 Ise-Shima summit. On the other hand, in the second half, the total number of guest nights of international visitors declined due to the decrease in overseas routes at the Mt. Fuji Shizuoka Airport, and the decline of Chinese tourists who accounted for a high composition ratio in the region. Therefore, the total number of guest nights decreased and the total number of guest nights of international visitors also declined.

6 Kinki The total number of guest nights of international visitors has increased since Kansai International Airport has continued to expand, mainly with LCCs, and there has been a growing awareness overseas of in Kansai, such as Kyoto and Osaka. On the other hand, due to a decrease in the number of guest nights of Japanese guests, the total number of guest nights decreased slightly, but the ratio of international visitors to the total number of guest nights increased from last year.

7 Chugoku The total number of guest nights of international visitors has increased in most markets, and also in the overall market. In March 2016, there was a new service of regular flights between Hong Kong and Okayama, and the Hong Kong market increased by 123% compared to the previous year. As for the total number of guest nights, there was an increase in some prefectures, but there was a slight decrease in the whole block.

33 8 Shikoku Along with the increase in regular routes between Taiwan and Takamatsu, and the introduction of LCC routes between Hong Kong and Takamatsu in July 2016, the number of visitors from Hong Kong and Taiwan increased. The number of visitors from China to Shikoku also increased and the total number of guest nights of international visitors showed high growth.

9 Kyushu The total number of guest nights in 2016 was greatly affected by the Kumamoto earthquake, which occurred in April of the same year. From April to June, both the total number of guest nights and the total number of guest nights of international visitors decreased compared with the previous year. However, the effects of the “Kyushu Tourism Travel Subsidy System,” also called the “Visit Kyushu Special Campaign” (Kyushu Recovery Discount), which started in July, helped bring about recovery. Since September, the number of international visitors, mainly from South Korea, has also recovered from the effects of the earthquake, and showed growth higher than the previous year.

10 Okinawa The total number of guest nights of international visitors from Taiwan, South Korea and China increased due to the expansion of new air routes, such as from Hong Kong. In addition, because of the growth in the number of international visitors, the total number of guest nights increased.

34 Section 7 Initiatives to Promote Tourism in Each Region

Efforts are being made in each region of Japan to attract tourists both from home and abroad and to promote . In the following, we will introduce the efforts in each regional block.

1 Hokkaido ○Specific model course for wide-area tour route “Amazing Northernmost Japan, Hokkaido Route’’ Considering that about 70% of the international visitors to Hokkaido stay in the Central Hokkaido area around City, we promoted the formation of wide-area tour routes based on the plan called the “Hokkaido-Route to Asian Natural Treasures,’’ certified in June 2015 by the Minister of Land, Infrastructure, Transport and Tourism. In June 2016, the Minister of Land, Infrastructure, Transport and Tourism certified a formation plan for the wide-area tour route “Amazing Northernmost Japan, Hokkaido Route,” to be implemented by the Hokkaido Wide- area Tourism Route Promotion Council. After certification, implementation of the marketing surveys of the target countries and the target regions of Northen Hokkaido were conducted, and a model course was developed which tied various previously unknown tourist resources with purpose of travel such as the food of Hokkaido, which is the pride of the world, rich including remote islands, and various experiences gained through them. We supported the following measures: 1. conducted a demonstration experiment to install Wi-Fi routers on intercity buses, etc.in order to ensure comfort during long travel from Central Hokkaido to the outer areas; 2. held an Inbound Forum to enhance regional unity while accelerating the efforts of wide-area tour routes within the area; 3. administered workshop style training with experts; 4. created a “Secondary Traffic Network Formation Plan” to investigate the operation status of existing secondary transportation facilities and the process and dynamics of users and solve the problems; 5. organized the current situation and listing of publication facilities etc. for creation of a foreign language unified notation list; 6. formulated foreign language notation guidelines; and other measures.

○Adventure travel to the world in Hokkaido In order to attract travelers who have a large amount of tourism consumption during their stay, we focused on the travel styles that take advantage of the characteristics of Hokkaido, and have created a promotion by leveraging the Visit Japan Regional Cooperation Project. “Adventure Travel World Summit” is the world's largest forum, held in Anchorage, Alaska in September, focusing on the burgeoning adventure travel market, which has a market size of $263 billion, and is of high interest among affluent Westerners. In the FY2016, it was the first time for the region of Japan to exhibit, and we actively engaged in building relationships with Summit Reception Desk forum participants and disseminating information. Adventure travel is defined as a travel form that includes at least 2 elements of nature, activity, and intercultural exchange. Because of the proximity of human life and rich nature, Hokkaido is one of the world's leading destinations in this field, with its unique Ainu culture, and easy accessibility to various areas with enjoyable activities.

35 2 Tohoku ○Wide-area tour route “Exploration to the Deep North of Japan” In the Tohoku region, a formulation plan for the wide-area tour route, “Exploration to the Deep North of Japan,” planned and implemented by the Tohoku Tourism Promotion Organization, was certified by the Minister of Land, Infrastructure, Transport and Tourism in 2015. In 2016, the organization formulated 3 model courses on the theme of beautiful natural and historically and culturally distinctive tourism contents where you can feel the colors of the four seasons. Regarding the model course that was formulated, we supported product development at travel agencies by refining the course through continued marketing, surveying analysis of characteristics related to travel in the target market, identifying contents that appeal to international visitors, improving influential contents by a survey of monitor international visitors, and other measures.

○Tourism promotion utilizing “the Subsidy for Tohoku Tourism Revival” The Tohoku region was largely behind in the nationwide inbound surge due to the influence of the damage from rumors, and in 2015 has finally recovered to the level before the earthquake. In order to accelerate the recovery of tourism in Tohoku by spreading the effect of the inbound surge, we supported efforts to attract inbound activities such as enhancing and strengthening the contents of stays based on ideas from the region. As support, we have set up a wide range of promotional projects such as overseas business meetings and invitations to overseas travel agents, and acceptance environment improvement projects, such as multi-lingualization of transportation hubs, etc. and have assisted efforts to revive tourism.

“Digital Content Promotion Business” by the Tohoku 6 prefectures collaboration

○The appeal of the winter in Tohoku We invited 6 travel companies from Thailand to the North Tohoku region, and worked to create travel products with themes such as snow scenes and winter events that cannot be experienced in Thailand. In addition, we invited 4 travel companies from China, and a total of 4 travel agencies and media companies from South Korea, focusing on the South Tohoku region, and encouraged the development of travel products, such as skiing and snow activities, which are expected to increase interest in the Winter Olympics.

Thai market invitation project China market invitation project

36 3 Kanto ○Certification of wide-area tour routes In June 2016, the Minister of Land, Infrastructure, Transport and Tourism certified a formulation plan for the wide-area tour route “The Wider Kanto Route ‘Around Tokyo,’” planned and implemented by the Tokyo & Around Tokyo Promotion Committee. In advance of the 2020 Tokyo Olympics and Paralympics, the above plan will change the acceptance environment of international visitors to Japan, which concentrate mostly in the central Tokyo area, and extend their visits to the wider Kanto area and neighboring prefectures. We fully utilized the global recognition of “Tokyo” and supported efforts to promote diverse tourism resources.

○Good Manners Campaign For the 2020 Tokyo Olympics and Paralympics, amid the prospect of further increases in international visitors to Japan, the commercial and tourist areas of Tokyo are experiencing social problems such as environmental pollution caused by traffic jams and idling due to congestion in the streets of private (sightseeing) buses. In order to respond to this problem, we distributed pamphlets to bus drivers, travel agencies (tour operators) and duty-free shops in Tokyo to educate them on manners and compliance related to bus travel. Educating chartered bus drivers on the streets

○TOKYO & AROUND TOKYO Promotion of tourism PR using brand-certified local products High quality products attractive to international visitors are certified as the “TOKYO & AROUND TOKYO Brand,” products created using the TOKYO & AROUND TOKYO unified logo were created. In collaboration with the Tokyo & Around Tokyo Promotion Committee, we held tourism PR events such as introduction and sales of brand certified products in November 2016 and March 2017 to improve brand awareness. In addition, tourism PR images of each prefecture constituting the Tokyo & Around Tokyo Promotion Committee, including brand certified local products, were released on on the Kanto Transport Bureau HP for international visitors and on a huge display inside the Tokyo Metro Station including PR promoting wide-area tourism. TRAVEL FESTIVAL 2016

37 4 Hokuriku-Shinetsu ○2016 Visit Japan Ambassador Committee in Tourism Zone In May 2016, at Yuzawa in Yuzawa Town, , in cooperation with Visit Japan Ambassador (VJ Ambassador) Ms. Mayumi Yamazaki, appointed by the Minister of Land, Infrastructure, Transport and Tourism, we conducted the “Visit Japan Ambassadors Meeting in the Snow Country Tourism Zone” with the Visit Japan Ambassadors and regional officials to discuss regional issues and measures to increase the number of international visitors in the future. About 130 people, including tourism-related people from both within Niigata Prefecture and from around the prefecture, participated. The first part of the first day was a symposium introducing the efforts of the Snow Country Tourism Zone, which is a leading Visit Japan Ambassador reception example and success nationwide, entitled “Uncover the knowledge hidden in the pure white World.” Next, the Niigata prefectural , VJ Ambassadors, and representatives from the Snow Country Tourism Zone held a panel discussion (the facilitator was Mayumi Yamazaki, an onsen essayist), followed by Visit Japan Ambassadors each introducing past efforts and experiences, and considerations about sightseeing promotion, etc. were also discussed. In the second part of the day, a “Visit Japan Ambassador Reception,” an exchange meeting incorporating “Snow Country Grade-A Gourmet Presentation,” was held. On the second day, the participants divided into three groups and went on a monitor tour excursion “Snow Country Tourism Zone Stay Program Sent Out to the World.”

○Tourism Nation Showcase 3 City Mayor Summit Kanazawa City, , was selected as the “Tourism Nation Showcase” that forms a model case for attracting international visitors to Japan (selected in January 2016, together with Nagasaki City, , and Kushiro City, Hokkaido) as an effort to form a model case to attract international visitors to the region. In February 2017, in the Kanazawa City, the “Tourism-Nation Showcase 3 City Mayor Summit” was held. They resolved to “aim to attract visitors from overseas, work on the improvement of tourism resources and the development of the acceptance environment for tourists, and build communities that would harmonize with the lives Panel discussion of citizens.” In the future, the goal is to form a “Tourism Nation Showcase” that is selected by many international visitors to Japan, and the relevant ministries and agencies are working together to provide priority support.

○ Hokuriku-Hida-Shinshu “Mitsuboshi Kaidou” Three-star Road Top Seminar Kanazawa City, Nanto City, Shirakawa Village, Takayama City and Matsumoto City, which have some of the best tourism resources in our country such as “Kenrokuen,” “The Historic Villages of Gokayama and Shirakawa-go,” “Historical towncapes (Hida Takayama),” and the “National Treasure ” (which have all received 3-star ratings in the Michelin · Green Guide · Japon), have collaborated on the appeal of wide-area tourism and worked on the “Hokuriku-Hida- Shinshu ‘Mitsuboshi Kaidou’ 3-star Road.” In February 2017, the “Hokuriku-Hida-Shinshu “Mitsuboshi Kaidou” Three-star Road Top Seminar” was held for tour operators in the metropolitan area, the media that can transmit information to international visitors and various countries, and the mayors of the 5 cities and villages conducted Presentations promotions.

38 5 Chubu ○Initiatives for the Ise-shima Summit Taking advantage of the opportunity of the Ise-Shima summit (the G7 summit) held on May 26-27, 2016, in order to continue the interest in Ise-shima, we intensively disseminated information about the Ise-shima area and surrounding tourism areas on the “Japan Travel-, Chubu” on Facebook. In addition, in order to promote new hands-on tourism content to France, which was a participating country in the Ise-shima summit, we invited travel agencies to promote the appeal of Ise-Shima.

○Further Promotion of the SHORYUDO Project In SHORYUDO, certified as a specific model course for wide-area tour routes in June 2015, four model courses were formulated in April 2016. In addition, so that international visitors can go around on wide-area tour routes in a variety of ways, depending on their taste, six common tourism story themes were created, such as “SAKE Story,” and “MONOZUKURI Story,” as an expansion of SHORYUDO and further promotion of the area’s appeal. For the SHORYUDO project, the Chubu Economic Federation and the Hokuriku Economic Federation, in cooperation with the local business community, dispatched a mission delegation to Viet Nam as sales promotion, and conducted various initiatives SHORYUDO ambassador, Ryoko Nakano, doing PR for including sending actress and SHORYUDO Ambassador SHORYUDO on a Shanghai talk show

Ryoko Nakano, born in Tokoname City (where Chubu International Airport is located), to Shanghai. As a result, the Airlines expansion of the Nagoya - Ho Chi Minh Route started in January 2017. In addition, “Centrair Limousine,” connecting Chubu International Airport and Nagoya City, greatly expanded in April and November 2016 with one operation per hour during the day and other airport access improvements were made. Also, in order to expand hands-free travel services, demonstration experiments on “passenger and goods mixed transport” were conducted on some operations of “Centrair Limousine.”

○Move toward New Business Development by Establishing a Wide-area Collaborative DMO The “Central Japan Tourism Association” was established as a wide-area collaboration DMO to serve as a steering committee of tourism area management in the SHORYUDO area. Based on a solid marketing strategy, the group is aiming to win the regional competition in attracting tourists in the age of 40 million international visitors in 2020, with effective information dissemination, promotion and a new perspective of business development.

39 6 Kinki ○Efforts to Improve Convenience for International Visitors to Kansai In the , the Minister of Land, Infrastructure, Transport and Tourism certified a formation plan for the wide-area tour route “THE FLOWER OF JAPAN，KANSAI” in 2015, including 5 World Heritage sites and 7 scenic sights. We are working on the Kansai common goal of attracting 45% of international visitors to the Kansai area, 18 million international visitors, 37 million the total number of guest nights of international visitors, and about 3 trillion yen for the amount of tourism consumption. There is free public wireless LAN in the Kansai area, but in reality it is difficult for international visitors to Japan to use because an authorization procedure is necessary each time in each area. Therefore, in order to support the efforts to improve the convenience of international visitors, who are expected to further increase in the future, one of the implementations of the Union of Kansai Governments, is the usage of a common authentication app, so that after the first connection procedure in the Kansai area, it is easy to use the free Wi-Fi, which is maintained by the municipality in the area, with the push of a button. The operation of “KANSAI Free Wi-Fi (Official)” started from October 1, 2016.

7 Chugoku ○”San’in” Activities for Tourism Promotion In June 2016, the Minister of Land, Infrastructure, Transport and Tourism certified a formation plan for the wide-area tour route “Route Romantique-San’in,” which is organized and conducted by the San’in Tourism Organization. In the San’in area, which has the oldest history in Japan, the focus in on the “en (ties that bind people with other people, object, and even jobs)” that are important to Japanese people, such as the San’in themes of “myths” and “legends,” based on the concept of experiencing “nature,” “history” Rosoku Island Daisen (Daisen and “culture.” We supported activities conducted by (Okinoshima Town, Town, Hoki Town, Kofu Town, the implementing principal such as the ) ) improvement of the acceptance environment, the Certified 2016 enhancement of unique activities visitors can do “Japan’s Largest Livestock during their visits, the dissemination of information, Market Born of Jizo promotions, etc. targeting Europe and the United Bodhisattva Worship” States as well as Hong Kong, Taiwan, etc.

○The Momentum of Obama, Former President of the U.S., Visiting Hiroshima to Boost the Attractiveness to International Visitors to Japan In May 2016, Barack Obama, former President of the United States, visited Park and Hiroshima Peace Memorial Museum, Hiroshima City, . He was the first sitting U.S. President to visit Hiroshima, the site of the first atomic bomb usage, and many overseas media published this news. In addition, the number of visitors to the Hiroshima Peace Memorial Museum, where the “paper cranes” that were folded by former president Obama were exhibited, greatly increased. From 1,468,956 people in 2015 (321,140 for international visitors) to 1,691,467 people (362,966 for international visitors) in 2016, an increase to 115.1% (113.1% for international visitors) of the previous year.

40 Many international visitors became interested in Hiroshima, and it is an impetus for international visitors to come the Chugoku region in the future.

Paper cranes sent to Hiroshima City from Barack Obama, Former President of the United States

8 Shikoku ○Haiku (International Haiku Branding Business) Using contents based on “HAIKU” as the theme, we developed attractive services to enjoy haiku by creating landing-type travel products, and worked to promote the attractiveness and expand the consumption in the region by aiming for the brand recognition and branding of “ Haiku=HAIKU.” Since the selection of the “Tourism Attraction Creation Project Utilizing Regional Resources“ in FY2015, we have tried to build a network with market research related to “HAIKU” and with domestic and international haiku-related organizations, etc. We have already created landing-type travel products and developed several tactics, such as a “HAIKU BAR” to attract visitors from Europe and the United States, and employed a haiku sightseeing guide from Hiroshima Prefecture, which is more progressed in inviting International visitors from Europe and the United visitors from these areas, to visit Dogo Onsen, and to take a States write haiku in a haiku bar tour of Matsuyama City. We have also improved the accepting environment through the image of “Haiku Town Matsuyama,” and created a Haiku Spot Map, PR videos, a haiku guidebook, a set up an episode system on SNS.

○Cycling Island Shikoku PR Project To promote cycling in Shikoku to overseas cycling enthusiasts, we are promoting the “Around Shikoku Cycling Route” in cooperation with the 4 prefectures in Shikoku. In FY2016, the Visit Japan Regional Cooperation Project invited cycling media from Asia and the United States, and after actually running a part of the 980 km route, worked to disseminate information on the cycling environment of Shikoku by asking them to cover the attractiveness of cycling tourism, including its facilities and related facilities, as well as “the beautiful nature of Shikoku” and “contact with local people.”

Ashizuri Misaki (Cape of southernmost Shikoku) cycling coverage activities-Tosashimizu City, Kochi Prefecture

41 9 Kyushu Due to the impact of the Kumamoto earthquake in 2016, the views in famous parts of Kyushu were greatly damaged and the number of visitors to tourism area and overnight guests decreased. Especially in and Oita Prefecture, the damage to facilities was great, and overlap with the reputation damage created a serious situation. The government decided on the “Comprehensive Support Program for the Tourism Reconstruction of Kyushu“ on May 31 of the same year, and 2016 became a year to recover tourism in Kyushu. In Kumamoto City, Kumamoto Castle was positioned as a symbol for the reconstruction from the Kumamoto earthquake, and we worked to create a tour based on various contents of the reconstruction process and Kumamoto Castle. Also, through the development unique venues utilizing local resources and the use of events in local shopping districts, we have made tourist attractions more attractive than before the earthquake, and this has been disseminated both domestically and abroad. In other areas, in order to quickly recover the number of tourists that had fallen due to the earthquake and the reputation damage, the government conducted the Kyushu Tourism Travel Subsidy System, “Visit Kyushu Special Campaign” (Kyushu Recovery Discount), and implementated the Kyushu Expressway Pass which allows unlimited use of the expressway in Kyushu for a fixed price. In addition, through the Kyushu framework for the Tourism Attraction Creation Project Utilizing Tourism Resources, and the dissemination of safety and security information in the Kyushu area using the Visit Japan Regional Cooperation Project as well as supporting measures such as from the private sector, a new partnership was created for the hot spring area across the border.

○Efforts to Ensure the Safety of International Visitors Photo (above): Kumamoto Castle For accommodations in the Aso area and Yufu City, which were damaged by the Kumamoto damaged by the Kumamoto earthquake, the situation at the time of the earthquake disaster was investigated by a questionnaire, hearings, and the use of Photo (below): Partnership of hot international visitor monitors, and an evacuation drill was conducted spring areas across the border which assumed the situation at that time with the cooperation of the (Kurokawa Onsen, Yufuin Onsen) accommodations in the stricken areas. As a result of its efforts, we worked to improve the safety and security of inns and hotels, including the creation of the Visit Japan Emergency Initial Response Manual” for the evacuation of international visitors from accommodation facilities and the dissemination of information to accommodation officials in the Kyushu region.

42 10 Okinawa ○“Visit Our Exciting in the Pacific Ocean” In June 2016, the Minister of Land, Infrastructure, Transport and Tourism certified a formulation plan for the wide-area tour route, “Visit Our Exciting Ryukyu Islands in the Pacific Ocean,” created and implemented by the Ryukyu Islands Tour Route Formation and Promotion Council. In FY2016, we supported marketing surveys of the council such as grasping their needs and extracting acceptance issues. In addition, the council has formulated 3 specific model courses.

Shuri Castle Park ( City): the center of politics, diplomacy and culture in the Ryukyu Kingdom

Okinawa Main Island and 15 nearby remote island regions

Okinawa Main Island Kume Island Region (Naha City, Motobu Town, Nakijin Village) Kume-jima Town

Miyako Islands Region

43 Notes: 1. In Section 7, “a region” refers to the jurisdictional area of a District Transport Bureau. 2. The Tohoku region: the prefectures of Aomori, Iwate, Miyagi, Akita, Yamagata and Fukushima 3. The Kanto region: the prefectures of Ibaraki, Tochigi, Gumma, Saitama, Chiba, Tokyo, Kanagawa and Yamanashi 4. The Hokuriku Shin-etsu region: the prefectures of Niigata, Toyama, Ishikawa and Nagano 5. The Chubu region: the prefectures of Fukui, Gifu, Shizuoka, Aichi and Mie 6. The Kinki region: the prefectures of Shiga, Kyoto, Osaka, Hyogo, Nara and Wakayama 7. The Chugoku region: the prefectures of Tottori, Shimane, Okayama, Hiroshima and Yamaguchi 8. The Shikoku region: the prefectures of Tokushima, Kagawa, Ehime and Kochi 9. The Kyushu region: the prefectures of Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki and Kagoshima

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Appendix

Contents Appendix-1 International Tourist Arrivals and Tourism Receipts by Region ...... 1 Appendix-2 Balance of Payments for International Tourism (2015) ...... 1 Appendix-3 Changes in Japan’s Balance of Payments for International Tourism ...... 2 Appendix-4 International Outbound Traveler Rankings (2015) ...... 2 Appendix-5 Number of International Trips Taken Per Capita by the Top 20 Countries for International Outbound Travelers (2015) ...... 3 Appendix-6 Number of International Conferences Held in Asia-Pacific/Middle East Cities (2015) ...... 4 Appendix-7 Changes in the Total Number of Guest Nights of Japanese by Month (2016) ...... 5 Appendix-8 Changes in the Total Number of Guest Nights of International Visitors by Month (2016) ...... 6 Appendix-9 The Total Number of Guest Nights (Overall and International Visitors), Bed Occupancy Rates and Room Occupancy Rates by Prefecture (2016) ...... 7 Appendix-10 Total Number of Guest Nights by Prefecture (2016) ...... 8 Appendix-11 Total Number of Guest Nights of International Visitors by Prefecture (2016) ...... 9 Appendix-12 Breakdown of the Total Number of Guest Nights by Prefecture (2016) ...... 10 Appendix-13 Breakdown of the Total Number of Guest Nights of International Visitors by Prefecture (2016)...... 11 Appendix-14 Top 5 Prefectures in Total Number of Guest Nights of International Visitors by Country/Region (2016) ...... 12 Appendix-15 Accommodation Bed Occupancy Rates by Prefecture (2016) ...... 13 Appendix-16 Accommodation Room Occupancy Rates by Prefecture (2016) ...... 14 Appendix-17 Actual Number of Overnight Guests, Average Nights Per Person (Total and International Visitors) by Prefecture (2016) ...... 15 Appendix-18 Actual Number of Overnight Guests by Prefecture (2016) ...... 16 Appendix-19 Actual Number of International Visitor Overnight Guests by Prefecture (2016) ...... 17 Appendix-20 Actual Number of Visitors and Tourism Consumption by Prefecture (2015) ...... 18 Appendix-21 Changes in the Number of Japanese Overseas Travelers by Country/Region of Destination (Statistics from Receiving Countries/Regions) ...... 19 Appendix-22 Changes in the Gender Ratio of Japanese Overseas Travelers ...... 21 Appendix-23 Changes in the Number of Japanese Overseas Travelers by Age and Gender ...... 21 Appendix-24 Passenger Traffic of Departing Japanese Overseas Travelers ...... 22 (1,000 people) ...... 22 Appendix-25 Breakdown of Japanese Overseas Travelers’ Durations of Stay ...... 22 Appendix-26 Changes in the Number of International Visitors to Japan by Country/Region ...... 23 Appendix-27 Changes in the Number of International Visitors to Japan by Country/Region ...... 23 Appendix-28 Total Number of Guest Nights of International Visitors to Japan by Country/Region (2016) ...... 24 Appendix-29 Changes in the Number of International Visitors to Japan by Month (2016) ...... 24 Appendix-30 Changes in the Visiting Rates to Top-Ranking Japanese Prefectures That International Visitors Visit ...... 25 Appendix-31 Changes in the Number of International Visitors to Japan by Purpose ...... 25 Appendix-32 Breakdown of International Visitors by Purpose (2016) ...... 26 Appendix-33 Breakdown of International Visitors to Japan by Purpose, by Country/Region (2016) ...... 26 Appendix-34 Breakdown of International Visitors to Japan by Travel Form and by Country/Region (all purposes) (2016) ...... 27 Appendix-35 Breakdown of International Visitors to Japan by Travel Form and by Country/Region (Tourism & Leisure) (2016) ...... 27 Appendix-36 Changes in Passenger Traffic for International Visitors to Japan ...... 28 Appendix-37 Changes in International Visitors to Japan by Duration of Stay ...... 28 Appendix-38 Tourism Consumption of International Visitors to Japan by Country/Region (2016) ...... 29 Appendix-39 Breakdown of International Visitors’ Expenditure in Japan by Country/Region (2016) ...... 30 Appendix-40 International Visitors’ Satisfaction and Intent to Revisit Japan ...... 30 Appendix-41 Breakdown of International Visitors’ Travel Expenditure in Japan by Country/Region ...... 31 Appendix-42 Tourism Consumption of Per Capita Japanese Traveler Per Trip ...... 31 Appendix-43 Estimated Tourism Consumption (2015) ...... 32 Appendix-44 Breakdown of Domestic Tourism Consumption by Type of Tourism (2015) ...... 32 Appendix-45 Economic Impact of Tourism Consumption in Japan (2015) ...... 33 Appendix-46 Economic Impact of Tourism Consumption on Japan (2015) ...... 33 Appendix-47 Economic Impact of Tourism Consumption on Japan by Industry (2015) ...... 34 Appendix-48 Changes in Travel-Related Expenditure Per Household ...... 34 Appendix-49 Changes in Passenger Traffic in Japan by Transportation Means ...... 35 Appendix-50 People’s Priorities in the Near Future ...... 35 Appendix-51 Changes in the Trends of People’s Priorities in the Near Future ...... 36

Appendix-52 Top 10 Leisure Activities Potential Demand (2015) ...... 37 Appendix-53 Satisfaction with Current Lifestyle (2016) ...... 37 Appendix-54 Working Hours and Salaries of the Accommodation Industry (2016) ...... 38 Appendix-55 Aggregated Data on Businesses - Cross-Industrial Aggregated Data (Sales (Revenue), etc.) ...... 39 Appendix-56 Share of GDP of Each Industry (2015) ...... 40 Appendix-57 Budget for the JTA (FY2017) ...... 41 Appendix-58 Changes in the JTA Budget ...... 42

Appendix-1 International Tourist Arrivals and Tourism Receipts by Region

(Upper box: 10,000 people; Lower box: 1 mil. USD) Year 2014 2015 Category Tourist arrivals Tourist arrivals YoY Change Share YoY Change Share Region Tourism receipts Tourism receipts 58,024 2.3% 51.0% 60,751 4.7% 51.1% Europe 513,010 4.1% 39.2% 450,144 -12.3% 1.5% 18,186 8.5% 16.0% 19,271 6.0% 16.2% Americas 288,227 7.1% 22.0% 303,933 5.4% 24.1% 26,438 5.8% 23.3% 27,929 5.6% 23.5% Asia-Pacific 420,003 5.9% 32.1% 418,596 -0.3% 33.2% 5,520 0.9% 4.9% 5,381 -2.5% 4.5% Africa 36,167 1.7% 2.8% 33,234 -8.1% 2.6% 5,542 12.8% 4.9% 5,587 0.8% 4.7% Middle East 51,629 10.8% 3.9% 54,235 5.0% 4.3% 113,710 4.5% 100.0% 118,918 4.6% 100.0% Total 1,309,036 5.5% 100.0% 1,260,142 -3.7% 100.0% Source: Reference from the UNWTO

Appendix-2 Balance of Payments for International Tourism (2015) (1 mil. USD) Revenues Expenditures Balance U.S.A. 204,500 120,500 84,000 Spain 56,500 17,800 38,700 Thailand 44,600 7,600 37,000 Italy 39,400 24,500 14,900 Hong Kong 36,200 22,900 13,300 Austria 18,300 9,000 9,300 Japan 25,000 16,000 9,000 Mexico 17,700 10,100 7,600 France 45,900 38,400 7,500 Malaysia 17,600 10,500 7,100 India 21,000 14,900 6,100 Australia 29,400 23,500 5,900 Indonesia 10,800 7,300 3,500 Switzerland 16,200 16,000 200 Poland *1 9,700 9,540 160 Taiwan 14,400 15,500 -1,100 Sweden 12,200 16,900 -4,700 Netherlands 13,200 18,200 -5,000 Singapore 16,700 22,100 -5,400 Belgium 11,700 18,700 -7,000 South Korea 15,300 25,000 -9,700 Saudi Arabia 10,100 20,700 -10,600 Canada 16,200 29,300 -13,100 U.K. 45,500 63,500 -18,000 Russia 8,500 34,900 -26,400 Germany 36,900 76,300 -39,400 China 114,100 292,200 -178,100 Source: Data from the JNTO (original sources are from the UNWTO and each countries’ national tourist organization). Note: 2014 values were used for Poland because the 2015 values were unknown.

1

Appendix-3 Changes in Japan’s Balance of Payments for International Tourism (100 mil. yen) Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 Category Balance of payments Credit 11,186 9,641 11,586 8,752 11,631 14,766 19,975 30,240 33,375 for international Debit 28,818 23,527 24,462 21,716 22,248 21,311 20,419 19,338 20,110 tourism (not including Net 17,631 13,886 12,875 12,963 10,617 6,545 444 10,902 13,266 passenger transport) balance Balance of payments Credit △ 14,254 △ 11,702 △ 13,461 △ 9,976 △ 12,920 △16,498 2△2,067 33,046 36,287 for international Debit 40,274 32,487 34,393 31,673 32,661 31,452 30,233 28,148 27,926 tourism (including Net 26,020 20,785 20,932 21,697 19,741 14,954 8,166 4,898 8,361 passenger transport) balance Credit △776,111 △511,216 △643,914 △629,653 △619,568 △678,290 7△40,747 752,742 689,797 Balance of trade Debit 718,081 457,340 548,754 632,955 662,287 766,024 845,400 761,604 634,546 Net 58,031 53,876 95,160 3,302 42,719 87,734 104,653 8,862 55,251 balance △ △ △ △ △ Source: Reference from the Ministry of Finance Notes: 1.The “balance of payments for international tourism” was calculated by the JTA on the basis of the following definition: the “net balance for international tourism (not including passenger transport)” refers to the net balance for travel within the international balance of payments. The “balance of payments for international tourism (including passenger transport)” is calculated by adding the net balance for passenger transport within the balance for transport to the above-mentioned net balance for travel. 2. indicates deficit. 3. 2016 data represent preliminary values. △ Appendix-4 International Outbound Traveler Rankings (2015)

(10,000 people) 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

China 11,689 Germany 8,301 U.S.A. 7,345 U.K. 6,417 Russia 3,455 Canada 3,227 Italy 2,904 France 2,665 Ukraine 2,314 Saudi Arabia 2,082 Mexico 1,960 South Korea 1,931 India 1,833 Netherlands 1,807 Japan 1,621 Japan ranked 15th in the world and 4th in Asia Sweden 1,592 Spain 1,441 Switzerland 1,360 Taiwan 1,318 Romania 1,312

Source: Compendium of Tourism Statistics Data 2011–2015, 2017 Edition (UNWTO), and Handbook of Data on International Visitors to Japan (JNTO). Notes: 1. 2013 data were used for Sweden, because the 2015 data for the country were unknown. 2. 2014 data were used for Germany, Mexico and India because the 2015 data were unknown.

2

Appendix-5 Number of International Trips Taken Per Capita by the Top 20 Countries for International Outbound Travelers (2015)

(Number of trips) 0.0 0.5 1.0 1.5 2.0 Sweden 1.66 Switzerland 1.64 Netherlands 1.07 Germany 1.00 U.K. 0.99 Canada 0.90 Romania 0.67 Saudi Arabia 0.66 Taiwan 0.56 Ukraine 0.52 Italy 0.49 France 0.41 South Korea 0.38 Spain 0.31 Russia 0.24 U.S.A. 0.23 Mexico 0.15 Japan 0.13 China 0.08 India 0.01

Source: Compendium of Tourism Statistics Data 2011 – 2015, 2017 Edition (UNWTO), State of World Population 2015 (UNFPA), and Handbook of Data on International Visitors to Japan (JNTO) Notes: 1. Calculated by dividing the country’s population by the number of outbound international travelers. 2. 2013 data were used for Sweden, because the 2015 data were unknown. 3. 2014 data were used for Germany, Mexico and India because the 2015 data were unknown.

3

Appendix-6 Number of International Conferences Held in Asia-Pacific/Middle East Cities (2015) 2015 2015 2015 Ranking in the Asia-Pacific and World City Number of Middle East region ranking conferences 1 7 Singapore 156 2 13 Seoul 117 3 15 Hong Kong 112 4 16 Bangkok 103 5 19 Beijing 95 6 22 Taipei 90 7 25 Sydney 86 8 28 Tokyo 80 9 32 Kuala Lumpur 73 10 46 Dubai 56 11 47 Shanghai 55 12 49 Melbourne 54 13 57 Kyoto 45 Manila 41 14 64 New Delhi 41 16 68 Bali 40 17 73 Abu Dhabi 35 Pusan 34 18 77 Jeju 34 20 85 Fukuoka 30 25 115 Osaka 23 26 117 22 30 139 Sapporo 18 39 182 Nagoya 14 13 42 191 Okinawa 13 Sendai 9 58 254 9 Source: Reference from the ICCA (International Congress and Convention Association) statistics

4

Appendix-7 Changes in the Total Number of Guest Nights of Japanese by Month (2016)

(10,000 guest nights) (%) 5,000 4,931 50

Total for 2016: 423.30 million guest nights 4,500 40

4,000 30 3,762 3,730 3,621 3,620 3,469 3,480 3,500 3,375 20

3,150 3,117 3,069 3,006 3,000 10

2,500 0 0.0 -1.5 -7.2 -7.3 -1.8 -2.9 -2.0 -2.1 -4.4 -4.1 -3.9 -3.7 2,000 -10 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

the Total Number of Guest Nights of Japanese YoY change

Source: Overnight Travel Statistics Survey (JTA) Note: Figures for 2016 are preliminary.

5

Appendix-8 Changes in the Total Number of Guest Nights of International Visitors by Month (2016)

(10,000 guest nights) Number of Guest Nights (International Visitors) (%) 780 50 45.0 720 700 698

660 610 40 594 574 585 583 582 600 572 560 540 518 512 30 480

420 25.5 Total for 2016: 70.88 million guest nights 20 360

300 16.7 10 240 10.1 9.0 8.9 180 3.7 120 2.5 0 -0.6 60 -2.4 -3.6 -4.0 0 -10 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Source: Overnight Travel Statistics Survey (JTA) the Total Number of Guest Nights of International Visitors Notes: YoY change 1. Ther term “international visitor” refers to anyone who does not have an address in Japan. 2. Figures for 2016 are preliminary.

6

Appendix-9 The Total Number of Guest Nights (Overall and International Visitors), Bed Occupancy Rates and Room Occupancy Rates by Prefecture (2016) The Total Number of The Total Number of Guest Nights Guest Nights of Bed Occupancy Rate Room Occupancy Rate

(10,000 Guest Nights) International Visitors (%) (%) (10,000 Guest Nights) Nationwide 49,418 7,088 39.6% 60.0% Hokkaido 3,448 692 43.6% 62.0% Aomori 463 16 32.5% 51.3% Iwate 617 13 30.8% 52.8% Miyagi 1,001 20 40.5% 60.6% Akita 328 6 26.1% 44.1% Yamagata 535 9 25.8% 47.5% Fukushima 1,029 8 28.9% 50.1% Ibaraki 567 22 34.0% 52.4% Tochigi 1,032 24 33.2% 50.5% Gunma 873 22 33.0% 51.2% Saitama 445 17 46.5% 65.8% Chiba 2,156 346 50.5% 68.4% Tokyo 5,720 1,806 65.7% 79.4% Kanagawa 1,920 227 48.6% 67.9% Niigata 1,012 26 24.4% 40.9% Toyama 328 20 28.2% 50.5% Ishikawa 854 62 41.9% 64.2% Fukui 376 5 25.3% 41.0% Yamanashi 839 137 26.1% 45.4% Nagano 1,801 116 21.3% 35.5% Gifu 626 97 31.2% 50.3% Shizuoka 2,111 158 33.9% 54.4% Aichi 1,668 232 50.2% 70.3% Mie 1,003 36 34.9% 55.0% Shiga 468 47 34.9% 56.8% Kyoto 1,804 482 50.2% 70.9% Osaka 3,142 1,026 74.0% 84.1% Hyogo 1,380 108 35.9% 57.7% Nara 244 30 25.6% 45.5% Wakayama 445 53 28.3% 46.4% Tottori 293 10 26.9% 49.3% Shimane 344 6 31.4% 56.3% Okayama 528 28 34.7% 56.7% Hiroshima 942 85 44.2% 65.6% Yamaguchi 436 9 38.5% 57.3% Tokushima 226 7 27.7% 49.0% Kagawa 389 36 38.2% 58.9% Ehime 390 15 32.9% 52.3% Kochi 271 7 26.3% 46.9% Fukuoka 1,612 267 52.2% 70.9% Saga 292 25 37.1% 57.9% Nagasaki 758 74 36.2% 53.7% Kumamoto 723 51 34.7% 58.0% Oita 678 85 36.1% 52.5% Miyazaki 361 25 34.1% 51.3% Kagoshima 721 49 35.1% 51.5% Okinawa 2,220 448 50.5% 67.3% Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The term “international visitor” refers to anyone who does not have an address in Japan. 2. “International visitors” includes international visitors from unknown countries/regions (origin). 3. The bed occupancy rate is the rate of the number of accommodation guests compared to full guest room capacity. For example, if one guest stayed in a guest room with a two-guest capacity, the bed occupancy rate would be 50%. 4. The room occupancy rate is the utilization rate of guest rooms compared to the total number of guest rooms. For example, if one of an accommodation’s two guest rooms were occupied, the room occupancy rate would be 50%. 5. In this table, accommodation guests (total) include international visitors. 6. Figures for 2016 are preliminary. 7

Appendix-10 Total Number of Guest Nights by Prefecture (2016)

Tokyo 5,720 Hokkaido 3,448 Osaka 3,142 Okinawa 2,220 Chiba 2,156 Shizuoka 2,111 Kanagawa 1,920 Kyoto 1,804 Nagano 1,801 Aichi 1,668 Fukuoka 1,612 Hyogo 1,380 Tochigi 1,032 Fukushima 1,029 Niigata 1,012 Mie 1,003 Miyagi 1,001 Hiroshima 942 Gunma 873 Ishikawa 854 Yamanashi 839 Nagasaki 758 Kumamoto 723 Kagoshima 721 Oita 678 Gifu 626 Iwate 617 Ibaraki 567 Yamagata 535 Okayama 528 Shiga 468 Total for 2016: 494.18 million guest nights Aomori 463 Wakayama 445 Saitama 445 Yamaguchi 436 Ehime 390 Kagawa 389 Fukui 376 Miyazaki 361 Shimane 344 Toyama 328 Akita 328 Tottori 293 Saga 292 Kochi 271 Nara 244 Tokushima 226 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 (10,000 guest nights) Source: Overnight Travel Statistics Survey (JTA) Note: Figures for 2016 are preliminary.

8

Appendix-11 Total Number of Guest Nights of International Visitors by Prefecture (2016)

Tokyo 1,806 Osaka 1,026 Hokkaido 692 Kyoto 482 Okinawa 448 Chiba 346 Fukuoka 267 Aichi 232 Kanagawa 227 Shizuoka 158 Yamanashi 137 Nagano 116 Hyogo 108 Gifu 97 Hiroshima 85 Oita 85 Nagasaki 74 Ishikawa 62 Wakayama 53 Kumamoto 51 Kagoshima 49 Shiga 47 Mie 36 Kagawa 36 Nara 30 Okayama 28 Niigata 26 Miyazaki 25 Total for 2016: 70.88 million guest nights Saga 25 Tochigi 24 Ibaraki 22 Gunma 22 Toyama 20 Miyagi 20 Saitama 17 Aomori 16 Ehime 15 Iwate 13 Tottori 10 Yamaguchi 9 Yamagata 9 Fukushima 8 Kochi 7 Tokushima 7 Akita 6 Shimane 6 Fukui 5 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 (10,000 guest nights)

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The term “international visitor” refers to anyone who does not have an address in Japan. 2. Figures for 2016 are preliminary.

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Appendix-12 Breakdown of the Total Number of Guest Nights by Prefecture (2016) 2 2 2 1 1 5 4 4 4 4 3 3 3 3 3 2 2 2 2 2 9 8 8 7 7 7 7 7 6 6 12 12 12 12 10 10 9 17 16 16 15 14 20 20 27 33 32

65 67 70 68 67 71 69 69 39 65 65 66 72 72 75 76 75 54 61 67 70 74 76 78 78 69 72 74 78 80 59 71 73 76 83 70 72 77 68 68 73 75 46 69 74 53 64

41 33 32 30 29 31 29 29 27 27 26 28 28 29 27 22 25 22 24 24 24 22 22 23 18 18 19 19 20 19 17 21 19 20 19 19 14 16 16 15 13 14 16 14 9 11 9 Y H F C S N H M E S T Y S F F O O A O N W K S S K K N O I M T K N G T M A Y T G K H I T A I K b s w u u u h a h a h o h o o o o h a o i a a i h u a o u a k s k i i a a a k o i a y y a i i i a c r i f t i g a k k k i i i k t c a k y i m n g g m i r g y g m e y k c o o i m m n i i a r t a g o u g m z t k m h b t a k t a n h u u u k a a a u y a a o h o a a a a y t k g m e a a u s a a a a i a a o a o a m a m k i o i s a o s z s g w n g a s r a i e h o a t o g y n g g m h w w i a r h a a a h i k n a m i o i i a k a a i a i a u a k d i k m i i w a e a a o m m m a s m t a c i o i a t h a a h o a a a a i i

Japanese guests residing in the prefecture Japanese guests from outside the prefecture International visitors

Source:Overnight Travel Statistics Survey (JTA) Notes: 1. The unknown portion of Japanese nationals who stayed overnight by inside/outside the prefecture was calculated by prorating the ratio by inside/outside the prefecture and allocating the results to each prefecture. 2. The term “international visitor” refers to anyone who does not have an address in Japan. 3. Figures for 2016 are preliminary.

10

Appendix-13 Breakdown of the Total Number of Guest Nights of International Visitors by Prefecture (2016)

Hokkaido China, 24% Taiwan, 22% South Korea, 15% Hong Kong, 11% Thailand, 6% Other, 21% Aomori Taiwan, 34% South Korea, 17% United States, 14% China, 12% HK, 5% Other, 18% Iwate Taiwan, 53% China, 10% HK, 7% SK, 5% US, 4% Other, 20% Miyagi Taiwan, 33% China, 18% US, 10% Thailand, 6% SK, 5% Other, 29% Akita Taiwan, 40% South Korea, 13% China, 8% US, 6% HK, 5% Other, 27% Yamagata Taiwan, 42% China, 12% SK, 11% HK, 6% Thailand, 6% Other, 23% Fukushima Taiwan, 25% China, 17% US, 8% SK, 7% Thailand, 5% Other, 38% Ibaraki China, 44% Taiwan, 13% US, 7% SK, 6% Europe, 5% Other, 25% Tochigi Taiwan, 23% China, 14% United States, 13% Europe, 8% Thailand, 7% Other. 37% Gunma Taiwan, 46% China, 12% HK, 9% Thailand, 7% US, 6% Other, 22% Saitama China, 40% South Korea, 13% US, 8% Taiwan, 6%Europe, 7% Other, 27% Chiba China, 41% Taiwan, 14% US, 8% Thailand, 6% HK, 4% Other, 26% Tokyo China, 22% Taiwan, 12% United States, 11% SK, 7% Europe, 7% Other, 41% Kanagawa China, 32% United States, 13% Taiwan, 8% Europe, 8% SK, 5% Other, 33% Niigata Taiwan, 23% China, 18% SK, 10% HK, 8% US, 6% Other, 34% Toyama Taiwan, 32% Hong Kong, 17% China, 10% SK, 9% Thailand, 4% Other, 28% Ishikawa Taiwan, 35% Hong Kong, 12%China, 10% US, 7% Europe, 6% Other, 30% Fukui Taiwan, 36% China, 21% Hong Kong, 17% Thailand, 5% US, 5% Other, 17% HK, 4% Yamanashi China, 55% Taiwan, 13% Thailand, 9% Indonesia, 2% Other, 18% Nagano Taiwan, 35% China, 13% HK, 11% Australia, 9% Thailand, 5% Other, 28% Gifu China, 22% Taiwan, 19% Hong Kong, 14%Thailand, 7% Eur., 5% Other, 34% SK, 3%Thailand, 2% Shizuoka China, 69% Taiwan, 9% US, 3% Other, 13% Aichi China, 50% Taiwan, 10% HK, 5% US, 5% Thailand, 4% Other, 26% Mie China, 40% South Korea, 16% Taiwan, 15% HK, 4% Eur., 4% Other, 20% Shiga Taiwan, 30% China, 27% SK, 11% HK, 7% Eur., 4% Other, 21% Kyoto China, 22% Taiwan, 15% US, 12% Europe, 9%Australia, 5% Other, 37% Osaka China, 28% Taiwan, 17% South Korea, 17% HK, 11% Thailand, 4% Other, 24% Hyogo China, 27% Taiwan, 25% South Korea, 12% HK, 9% Eur., 4% Other, 23% Nara China, 55% Taiwan, 11% Eur., 5% HK, 4% US, 4% Other, 21% Wakayama China, 38% Hong Kong, 17% Taiwan, 14% SK, 5% Eur., 3% Other, 24% Tottori South Korea, 41% Hong Kong, 17% Taiwan, 14% China, 13% Thailand, 2% Other, 14% Shimane Taiwan, 21% Hong Kong, 14% South Korea, 13% China, 10% US, 8% Other, 33% Okayama Taiwan, 23% Hong Kong, 18% China, 18% SK, 8% Europe, 7% Other, 27% Hiroshima Europe, 14% United States, 14% Australia, 10%China, 9% HK, 8% Other, 45% Yamaguchi South Korea, 48% United States, 13% Taiwan, 12% China, 7% HK, 5% Other, 15% Tokushima Hong Kong, 32% China, 13% Taiwan, 13% US, 7% Europe, 6% Other, 29% Kagawa Taiwan, 26% China, 18% Hong Kong, 12%South Korea, 11% US, 3% Other, 30% Ehime Taiwan, 29% Hong Kong, 20% South Korea, 15% China, 12% US, 5% Other, 19% Kochi Taiwan, 31% Hong Kong, 20% South Korea, 14% China, 10% US, 5% Other, 20% Fukuoka South Korea, 37% Taiwan, 19% China, 12% Hong Kong, 12% Thailand, 4% Other, 15% Saga South Korea, 45% China, 20% Taiwan, 14% HK, 7%Thailand, 2%Other, 13% Nagasaki South Korea, 29% Taiwan, 20% China, 11% US, 8% HK, 5% Other, 27% Kumamoto South Korea, 28% Taiwan, 24% China, 16% Hong Kong, 12% Thailand, 3% Other, 17% Thailand, 3% Oita South Korea, 54% Taiwan, 14% China, 10% HK, 8% Other, 11% China, 4% Other, 7% Miyazaki South Korea, 44% Hong Kong, 22% Taiwan, 22% Singapore, 1% Kagoshima Hong Kong, 29% Taiwan, 25% China, 14% South Korea, 13% Eur., 3% Other, 16% Okinawa South Korea, 29% Taiwan, 25% China, 21% Hong Kong, 13% US, 4%Other, 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The term “international visitor” refers to anyone who does not have an address in Japan. 2. "Europe" refers to Germany, the United Kingdom and France. 3. This results are based on a survey of facilities with at least 10 employees. 4. Figures for 2016 are preliminary.

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Appendix-14 Top 5 Prefectures in Total Number of Guest Nights of International Visitors by Country/Region (2016)

South Korea Osaka, 21% Tokyo, 14% Okinawa, 13% Fukuoka, 12% Hokkaido, 12% Other, 28% China Tokyo, 21% Osaka, 17% Hokkaido, 9% Chiba, 8% Aichi, 6% Other, 38% Hong Kong Osaka, 20% Tokyo, 18% Hokkaido, 13% Okinawa, 9% Fukuoka, 6% Other, 34% Taiwan Tokyo, 18% Osaka, 16% Hokkaido, 13% Okinawa, 8%Kyoto, 6% Other, 40% United States Tokyo, 42% Kyoto, 12% Osaka, 8% Kanagawa, 7% Chiba, 6% Other, 25% Canada Tokyo, 41% Kyoto, 12% Osaka, 11%Kanagawa, 6% Chiba, 5% Other, 25% United Kingdom Tokyo, 44% Kyoto, 15% Osaka, 7%Kanagawa, 7%Hiroshima, 4% Other, 23% Germany Tokyo, 41% Kyoto, 14% Kanagawa, 8%Osaka, 7%Hiroshima, 4% Other, 27% France Tokyo, 39% Kyoto, 17% Osaka, 9% Kanagawa, 6% Hiroshima, 5% Other, 24% Russia Tokyo, 47% Hokkaido, 8% Kyoto, 8% Chiba, 7% Kanagawa, 5% Other, 25% Singapore Tokyo, 34% Hokkaido, 20% Osaka, 14% Kyoto, 6% Chiba, 4% Other, 23% Thailand Tokyo, 25% Hokkaido, 16% Osaka, 15% Chiba, 9% Yamanashi, 4% Other, 30% Malaysia Hokkaido, 29% Tokyo, 24% Osaka, 15% Chiba, 5% Kyoto, 5% Other, 22% India Tokyo, 40% Kanagawa, 13% Osaka, 10% Kyoto, 7% Chiba, 5% Other, 25% Australia Tokyo, 36% Kyoto, 15% Osaka, 11% Hokkaido, 8% Chiba, 5% Other, 25% Indonesia Tokyo, 38% Osaka, 20% Hokkaido, 8%Kyoto, 5%Yamanashi, 4% Other, 25% Vietnam Tokyo, 30% Osaka, 20% Aichi, 9% Yamanashi, 7% Kanagawa, 7% Other, 28% Philippines Tokyo, 38% Osaka, 31% Hokkaido, 5% Chiba, 5%Kyoto, 3% Other, 18% Osaka, 7% Gifu, 3% Italy Tokyo, 41% Kyoto, 26% Hiroshima, 4% Other, 19% Osaka, 7% Gifu, 5% Spain Tokyo, 40% Kyoto, 27% Kanagawa, 6% Other, 16% Chiba, 5% Other Tokyo, 38% Osaka, 12% Kyoto, 10% Kanagawa, 5% Other, 31% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The term “international visitor” refers to anyone who does not have an address in Japan. 2. These results are based on a survey of facilities with at least 10 employees. 3. Figures for 2016 are preliminary.

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Appendix-15 Accommodation Bed Occupancy Rates by Prefecture (2016)

Osaka 74.0

Tokyo 65.7 Fukuoka 52.2 Okinawa 50.5 Chiba 50.5 Kyoto 50.2 Aichi 50.2 Kanagawa 48.6 Saitama 46.5 Hiroshima 44.2 Hokkaido 43.6 Ishikawa 41.9 Miyagi 40.5 Yamaguchi 38.5 Kagawa 38.2 Saga 37.1 Nagasaki 36.2 Oita 36.1 Hyogo 35.9 Kagoshima 35.1 Shiga 34.9 Mie 34.9 Kumamoto 34.7 Okayama 34.7 Miyazaki 34.1 Ibaraki 34.0 Shizuoka 33.9 Tochigi 33.2 Gunma 33.0 Ehime 32.9 Aomori 32.5 Shimane 31.4 Gifu 31.2 Iwate 30.8 Fukushima 28.9 Wakayama 28.3 Toyama 28.2 Tokushima 27.7 Tottori 26.9 Kochi 26.3 Yamanashi 26.1 Akita 26.1 Yamagata 25.8 Nara 25.6 Fukui 25.3 Niigata 24.4 Nagano 21.3 0 10 20 30 40 50 60 70 80 90 (%) Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The term “bed occupancy” refers to the occupancy ratio of the number of guests who stay overnight to the number of beds. For example, if one guest stays in a guest room with two beds, the bed occupancy is 50%. 2. Figures for 2016 are preliminary.

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Appendix-16 Accommodation Room Occupancy Rates by Prefecture (2016)

Osaka 84.1 Tokyo 79.4 Fukuoka 70.9 Kyoto 70.9 Aichi 70.3 Chiba 68.4 Kanagawa 67.9 Okinawa 67.3 Saitama 65.8 Hiroshima 65.6 Ishikawa 64.2 Hokkaido 62.0 Miyagi 60.6 Kagawa 58.9 Kumamoto 58.0 Saga 57.9 Hyogo 57.7 Yamaguchi 57.3 Shiga 56.8 Okayama 56.7 Shimane 56.3 Mie 55.0 Shizuoka 54.4 Nagasaki 53.7 Iwate 52.8 Oita 52.5 Ibaraki 52.4 Ehime 52.3 Kagoshima 51.5 Miyazaki 51.3 Aomori 51.3 Gunma 51.2 Toyama 50.5 Tochigi 50.5 Gifu 50.3 Fukushima 50.1 Tottori 49.3 Tokushima 49.0 Yamagata 47.5 Kochi 46.9 Wakayama 46.4 Nara 45.5 Yamanashi 45.4 Akita 44.1 Fukui 41.0 Niigata 40.9 Nagano 35.5 0 10 20 30 40 50 60 70 80 90 (%)

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The term “room occupancy” refers to the occupancy ratio of the number of rooms occupied to the total number of rooms. For example, if one of two guest rooms is occupied, the room occupancy is 50%. 2. Figures for 2016 are preliminary.

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Appendix-17 Actual Number of Overnight Guests, Average Nights Per Person (Total and International Visitors) by Prefecture (2016) Actual Total Guest Nights Average Nights Per Actual Total International Average Nights Per

(people) Person Visitor Nights (people) International Visitor Total 374,041,240 1.32 45,946,560 1.54 Hokkaido 25,902,630 1.33 4,839,180 1.43 Aomori 3,711,370 1.25 126,770 1.24 Iwate 4,679,330 1.32 99,810 1.29 Miyagi 7,439,320 1.35 139,050 1.46 Akita 2,478,380 1.32 45,810 1.37 Yamagata 4,134,500 1.29 57,280 1.54 Fukushima 7,588,480 1.36 57,750 1.38 Ibaraki 4,221,580 1.34 150,830 1.44 Tochigi 8,455,640 1.22 177,250 1.33 Gunma 7,316,520 1.19 173,100 1.25 Saitama 3,347,910 1.33 103,630 1.61 Chiba 16,852,600 1.28 2,923,870 1.18 Tokyo 38,607,590 1.48 9,395,460 1.92 Kanagawa 14,862,190 1.29 1,597,620 1.42 Niigata 7,789,520 1.30 136,450 1.92 Toyama 2,763,720 1.19 167,010 1.22 Ishikawa 7,094,400 1.20 448,510 1.37 Fukui 3,097,380 1.21 42,350 1.27 Yamanashi 7,083,890 1.18 1,288,300 1.07 Nagano 13,791,260 1.31 785,080 1.48 Gifu 5,204,270 1.20 821,770 1.18 Shizuoka 17,714,360 1.19 1,428,650 1.10 Aichi 12,987,540 1.28 1,765,150 1.32 Mie 8,079,000 1.24 270,310 1.34 Shiga 3,776,040 1.24 379,420 1.23 Kyoto 12,138,540 1.49 2,518,000 1.92 Osaka 21,942,640 1.43 6,072,250 1.69 Hyogo 11,089,540 1.24 827,240 1.30 Nara 2,044,260 1.19 237,660 1.25 Wakayama 3,899,440 1.14 468,000 1.14 Tottori 2,435,890 1.20 79,370 1.22 Shimane 2,823,670 1.22 43,420 1.34 Okayama 4,188,270 1.26 202,410 1.37 Hiroshima 7,423,800 1.27 612,710 1.39 Yamaguchi 3,221,150 1.35 67,020 1.39 Tokushima 1,736,490 1.30 52,530 1.30 Kagawa 3,140,180 1.24 267,960 1.33 Ehime 3,297,710 1.18 119,360 1.23 Kochi 2,228,800 1.22 51,490 1.42 Fukuoka 12,542,110 1.29 1,838,070 1.45 Saga 2,275,240 1.28 202,530 1.22 Nagasaki 5,744,680 1.32 513,870 1.45 Kumamoto 5,603,430 1.29 423,760 1.21 Oita 5,901,510 1.15 786,860 1.08 Miyazaki 2,767,150 1.30 147,720 1.69 Kagoshima 5,467,420 1.32 358,390 1.36 Okinawa 13,149,960 1.69 2,635,530 1.70

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The term “international visitor” refers to anyone who does not have an address in Japan. 2. “Average nights” refers to the average nights per person spent in the same accommodation. 3. Figures for the actual total guest nights include those for international visitors. 4. Figures for 2016 are preliminary.

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Appendix-18 Actual Number of Overnight Guests by Prefecture (2016)

Tokyo 3,861 Hokkaido 2,590 Osaka 2,194 Shizuoka 1,771 Chiba 1,685 Kanagawa 1,486 Nagano 1,379 Okinawa 1,315 Aichi 1,299 Fukuoka 1,254 Kyoto 1,214 Hyogo 1,109 Tochigi 846 Mie 808 Niigata 779 Fukushima 759 Miyagi 744 Hiroshima 742 Gunma 732 Ishikawa 709 Yamanashi 708 Total for 2016: 374.04 million guests Oita 590 Nagasaki 574 Kumamoto 560 Kagoshima 547 Gifu 520 Iwate 468 Ibaraki 422 Okayama 419 Yamagata 413 Wakayama 390 Shiga 378 Aomori 371 Saitama 335 Ehime 330 Yamaguchi 322 Kagawa 314 Fukui 310 Shimane 282 Miyazaki 277 Toyama 276 Akita 248 Tottori 244 Saga 228 Kochi 223 Nara 204 Tokushima 174 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

(10,000 people) Source: Overnight Travel Statistics Survey (JTA) Note: Figures for 2016 are preliminary.

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Appendix-19 Actual Number of International Visitor Overnight Guests by Prefecture (2016)

Tokyo 940 Osaka 607 Hokkaido 484 Chiba 292 Okinawa 264 Kyoto 252 Fukuoka 184 Aichi 177 Kanagawa 160 Shizuoka 143 Yamanashi 129 Hyogo 83 Gifu 82 Oita 79 Nagano 79 Hiroshima 61 Nagasaki 51 Total for 2016: 45.95 million guests Wakayama 47 Ishikawa 45 Kumamoto 42 Shiga 38 Kagoshima 36 Mie 27 Kagawa 27 Nara 24 Saga 20 Okayama 20 Tochigi 18 Gunma 17 Toyama 17 Ibaraki 15 Miyazaki 15 Miyagi 14 Niigata 14 Aomori 13 Ehime 12 Saitama 10 Iwate 10 Tottori 8 Yamaguchi 7 Fukushima 6 Yamagata 6 Tokushima 5 Kochi 5 Akita 5 Shimane 4 Fukui 4 0 100 200 300 400 500 600 700 800 900 1,000 (10,000 people)

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The term "international visitor" refers to anyone does not have an address in Japan. 2. Figures for 2016 are preliminary.

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Appendix-20 Actual Number of Visitors and Tourism Consumption by Prefecture (2015) Visitors Tourism Consumption Prefecture (10,000 people) (100 mil. yen) Hokkaido 5,448 9,723 Aomori 1,474 1,724 Iwate 1,165 1,635 Miyagi 2,912 3,017 Akita 1,154 1,396 Yamagata 1,965 2,015 Fukushima 2,006 3,040 Ibaraki 3,859 2,695 Tochigi 4,717 5,132 Gunma 3,065 2,950 Saitama 10,924 4,747 Chiba 9,161 11,971 Tokyo 52,859 59,615 Kanagawa *1 - - Niigata 3,684 3,781 Toyama *1 - - Ishikawa *1 - - Fukui *1 - - Yamanashi 3,146 3,967 Nagano 4,445 7,410 Gifu 4,360 2,844 Shizuoka 7,685 8,927 Aichi *1 - - Mie 3,542 3,841 Shiga 2,349 2,159 Kyoto *1 - - Osaka *2 Hyogo 7,224 8,121 Nara 2,281 1,470 Wakayama 1,268 1,171 Tottori 945 985 Shimane 1,166 1,117 Okayama 1,449 1,581 Hiroshima *1 2,310 2,521 Yamaguchi 1,813 1,395 Tokushima 1,010 1,080 Kagawa 1,674 1,895 Ehime 1,497 1,254 Kochi *1 - - Fukuoka *1 - - Saga 2,022 2,807 Nagasaki *1 - - Kumamoto 2,904 3,900 Oita 2,287 2,146 Miyazaki 1,580 1,524 Kagoshima 1,807 2,837 Okinawa *1 - - Source: Inbound Tourism Statistics based on the common standards for individual prefectures Notes: 1. Data are still being compiled for Kanagawa, Toyama, Ishikawa, Fukui, Aichi, Kyoto, Hiroshima, Kochi, Fukuoka, Nagasaki and Okinawa. 2. has yet to introduce the common standard for its statistics. 3. The given figures are the combined numbers of Japanese visitors (business, leisure) and international visitors as of February 28, 2017.

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Appendix-21 Changes in the Number of Japanese Overseas Travelers by Country/Region of Destination (Statistics from Receiving Countries/Regions) 2011 2012 2013 2014 2015 Destination Standards YoY YoY YoY YoY YoY People Change People Change People Change People Change People Change (%) (%) (%) (%) (%) China VFN 3,658,169 -2.0 3,518,153 -3.8 2,877,533 -18.2 2,717,600 -5.6 2,497,700 -8.1 South Korea VFN 3,289,051 8.8 3,518,792 7.0 2,747,750 -21.9 2,280,434 -17.0 1,837,782 -19.4 Taiwan VFR 1,294,758 18.1 1,432,315 12.1 1,421,550 -0.8 1,634,790 15.0 1,627,229 -0.5 Thailand TFN 1,127,893 13.5 1,373,716 21.8 1,536,425 11.8 1,267,886 -17.5 1,381,690 9.0 Hong Kong VFR 1,283,687 -2.5 1,254,602 -2.3 1,057,033 -15.7 1,078,766 2.1 1,049,272 -2.7 Singapore VFR 656,417 24.1 757,116 15.3 832,845 10.0 824,741 -1.0 789,179 -4.3 Viet Nam VFR 481,500 8.9 576,386 19.7 604,050 4.8 647,956 7.3 671,379 3.6 Malaysia TFR 386,974 -7.0 470,008 21.5 513,076 9.2 553,106 7.8 483,569 -12.6 Indonesia TFN 423,113 1.7 463,486 9.5 497,399 7.3 505,175 1.6 Philippines TFR 375,496 4.7 412,474 9.8 433,705 5.1 463,744 6.9 Macao VFR 396,050 -4.2 395,989 0.0 290,622 -26.6 299,849 3.2 Asian India TFN 193,525 15.2 220,015 13.7 220,283 0.1 219,516 -0.4 Cambodia TFR 161,804 6.6 179,327 10.8 206,932 15.4 215,788 4.3 193,330 -10.4 Myanmar TFN 21,321 31.7 47,690 123.7 68,761 44.2 83,434 21.3 Laos VFN 37,833 11.2 42,026 10.9 48,644 15.7 44,877 -7.7 Sri Lanka TFR 20,586 43.4 26,085 26.7 31,505 20.8 39,136 24.2 Maldives TFN 35,782 -7.8 36,438 1.8 39,463 8.3 38,817 -1.6 Nepal TFN 26,283 12.6 28,642 9.0 26,694 -6.8 25,829 -3.2 Mongolia VFN 15,336 7.4 17,642 15.0 18,751 6.3 18,893 0.8 Pakistan TFN 9,918 40.1 8,242 -16.9 N.A. N.A. N.A. N.A. Brunei TFN 4,140 13.8 4,310 4.1 5,747 33.3 4,671 -18.7 Bangladesh TFN 5,675 - 5,773 1.7 4,456 -22.8 5,457 22.5 Bhutan TFN 3,943 33.1 6,967 76.7 4,015 -42.4 2,707 -32.6 Guam TFR 824,005 -7.8 929,229 12.8 893,118 -3.9 810,856 -9.2 Australia VFR 325,740 -16.6 348,050 6.8 324,320 -6.8 326,430 0.7 Northern Mariana Islands VFN 142,946 -22.7 153,259 7.2 141,747 -7.5 110,234 -22.2 New Zealand VFR 68,963 -21.4 72,080 4.5 74,560 3.4 81,136 8.8 Oceania Palau TFR 37,800 28.9 39,353 4.1 35,642 -9.4 37,986 6.6 New Caledonia TFR 18,455 -0.4 17,430 -5.6 15,674 -10.1 19,087 21.8 Tahiti TFR 12,990 -5.6 12,989 0.0 13,175 1.4 12,527 -4.9 Fiji TFR 9,616 -19.9 7,069 -26.5 7,314 3.5 5,888 -19.5 Turkey VFN 188,312 -3.6 203,592 8.1 174,150 -14.5 170,550 -2.1 Morocco TFN 22,861 -6.2 30,306 32.6 32,184 6.2 32,475 0.9 Bahrain VFN 17,129 - 21,543 25.8 22,050 2.4 21,784 -1.2 Jordan VFN 12,829 -32.7 15,321 19.4 15,279 -0.3 17,039 11.5 Saudi Arabia TFN 10,276 11.6 13,002 26.5 11,961 -8.0 13,655 14.2 Israel TFR 13,444 2.1 16,011 19.1 13,516 -15.6 13,042 -3.5 Armenia TFR 12,973 10.6 12,968 0.0 13,011 0.3 11,619 -10.7 Tunisia TFN 3,120 -76.7 8,002 156.5 6,460 -19.3 6,158 -4.7 Oman THSN 6,989 16.9 N.A. N.A. N.A. N.A. Central Asia / Iran VFN 4,937 -11.7 5,143 4.2 5,809 12.9 7,649 31.7 Mid. East / Africa Kazakhstan VFR 4,720 6.6 6,049 28.2 5,202 -14.0 6,379 22.6 Kuwait VFN 4,798 -3.2 5,291 10.3 5,072 -4.1 5,215 2.8 Republic of South Africa TFR 26,284 -4.7 34,415 30.9 41,099 19.4 27,504 -33.1 Egypt VFN 27,635 -78.1 39,008 41.2 31,181 -20.1 12,352 -60.4 Nigeria VFN 26,300 -3.8 41,988 59.7 24,231 -42.3 11,564 -52.3 Zimbabwe VFR 32,784 76.3 18,032 -45.0 20,374 13.0 19,400 -4.8 Tanzania VFR 3,984 -3.5 5,522 38.6 7,058 27.8 7,419 5.1 Zambia TFR 11,346 36.0 3,535 -68.8 5,532 56.5 7,539 36.3 Niger TFN 2,829 11.1 4,007 41.6 6,187 54.4 6,759 9.2 Germany TCER 642,542 6.2 734,475 14.3 711,529 -3.1 670,804 -5.7 France TFR 593,287 2.9 707,864 19.3 660,841 -6.6 784,423 18.7 Italy TFN 314,239 -7.6 353,547 12.5 454,465 28.5 423,202 -6.9 Switzerland THSR 275,923 -7.3 295,991 7.3 286,681 -3.1 250,451 -12.6 Spain TFR 342,979 3.0 357,671 4.3 385,005 7.6 475,058 23.4 Austria TCER 228,559 7.0 261,261 14.3 259,184 -0.8 245,306 -5.4 Europe U.K. VFR 237,000 6.3 242,700 2.4 225,000 -7.3 222,000 -1.3 Netherlands THSR 110,500 -7.1 136,300 23.3 150,000 10.1 145,000 -3.3 Croatia TCER 131,630 -10.5 155,088 17.8 159,117 2.6 176,846 11.1 Czech Republic TCEN 121,663 -8.6 141,596 16.4 137,844 -2.6 124,969 -9.3 Belgium TCER 91,414 12.8 111,962 22.5 112,278 0.3 111,939 -0.3 Finland TCER 75,680 10.1 91,783 21.3 106,769 16.3 102,154 -4.3 Russia VFN 76,204 -2.5 86,806 13.9 102,408 18.0 105,220 2.7 19

2011 2012 2013 2014 2015 Destination Standards YoY YoY YoY YoY YoY People Change People Change People Change People Change People Change (%) (%) (%) (%) (%) Portugal TCER 58,492 -5.2 64,578 10.4 78,797 22.0 83,374 5.8 Hungary TCEN 69,724 -9.3 77,093 10.6 77,516 0.5 68,742 -11.3 Poland VFN 45,000 -25.0 40,000 -11.1 45,000 12.5 67,000 48.9 Sweden TCER 40,978 -3.3 45,725 11.6 39,762 -13.0 42,949 8.0 Slovenia TCEN 35,321 -12.7 41,398 17.2 36,437 -12.0 40,852 12.1 Norway TCER N.A. N.A. 83,374 - 71,201 -14.6 61,924 -13.0 Denmark TCER 20,687 -38.9 22,670 9.6 21,667 -4.4 20,403 -5.8 Bulgaria VFR 10,236 2.7 11,148 8.9 11,268 1.1 12,066 7.1 Romania VFR 13,544 9.8 14,252 5.2 13,359 -6.3 14,505 8.6 Europe Iceland TFN 6,902 23.7 10,343 49.9 12,363 19.5 13,340 7.9 Greece TFR 10,125 1.0 8,841 -12.7 13,141 48.6 18,698 42.3 Estonia TCER 8,732 20.7 8,778 0.5 10,768 22.7 17,303 60.7 Lithuania TCER 8,528 11.4 9,465 11.0 10,079 6.5 14,526 44.1 Slovakia TCEN 8,865 -23.1 10,117 14.1 9,444 -6.7 5,079 -46.2 Latvia VFR 10,072 -3.9 N.A. N.A. N.A. N.A. N.A. N.A. Ukraine TFR 7,585 22.2 8,528 12.4 8,252 -3.2 4,346 -47.3 Monaco THSN 4,997 10.4 5,576 11.6 5,474 -1.8 4,265 -22.1 Serbia TCEN 3,988 32.4 5,251 31.7 5,130 -2.3 5,327 3.8 Luxembourg TCER 5,628 57.4 7,133 26.7 6,205 -13.0 7,679 23.8 United States TFR 3,249,569 -4.0 3,698,073 13.8 3,730,287 0.9 3,620,224 -3.0 North America (Hawaii) TFR 1,241,805 1.0 1,458,335 17.4 1,518,517 4.1 1,510,938 -0.5 Canada VFR 218,800 -10.0 240,000 9.7 238,500 -0.6 277,300 16.3 Mexico TFN 72,339 9.3 85,687 18.5 97,226 13.5 107,366 10.4 Brazil TFR 63,247 5.9 73,102 15.6 87,225 19.3 84,636 -3.0 Peru TFR 43,794 43.1 56,526 29.1 67,639 19.7 59,853 -11.5 Bolivia TFN 7,809 42.9 11,909 52.5 15,486 30.0 16,766 8.3 Chile TFN 12,693 -11.0 15,059 18.6 14,704 -2.4 15,053 2.4 Latin America Guatemala VFR 8,238 16.3 8,853 7.5 7,220 -18.4 6,712 -7.0 Cuba VFR 5,420 -14.9 7,348 35.6 5,896 -19.8 7,589 28.7 Colombia TFR 4,769 10.6 5,578 17.0 5,805 4.1 7,433 28.0 Ecuador VFN 5,114 0.2 5,342 4.5 5,576 4.4 5,424 -2.7 Costa Rica TFN 4,758 -5.3 5,117 7.5 4,932 -3.6 5,276 7.0

Source: References from UNWTO, PATA, and the tourism bureaus and statistics bureaus of each country. ◆ Remarks: Standards N: Reported by nationality / R: Reported by residential area / F: Frontier arrivals / CE: Total number of arrivals for all accommodations V: Number including both same-day and overnight visitors / T: Number of overnight visitors Notes: 1. The table contains countries/regions to which over 5,000 Japanese nationals traveled. 2. Figures for different statistics, such as for border arrivals and total number of arrivals for all accommodations, are mixed and tabulation standards differ, so it is not possible to compare as the same indicator. Particular caution should be heeded when comparing with data for Europe. 3 Data for the United States includes arrivals to the 50 states and the District of Columbia as well as arrivals for the country's protectorates, including the Northern Mariana Islands, Guam, U.S Samoa, Puerto Rico and the U.S. Virgin Islands. 4. Figures for Hawaii are included in those for the United States. 5. Saipan belongs to the Northern Mariana Islands. 6. Figures for individual countries/regions may be changed retroactively, because of changes from estimated to confirmed figures, changes in statistical standards or data inconsistency. 7. Figures in the table are as of May 2016.

20

Appendix-22 Changes in the Gender Ratio of Japanese Overseas Travelers 100%

53.2 53.5 53.2 56.6 55.6 55.2 54.5 54.4 53.7 54.8 55.2 57.2 56.5 56.0 56.5 56.7 56.9 54.6 54.8 54.5 55.5 56.4 57.2 61.3 61.0 58.3

50%

46.8 46.5 46.8 43.4 44.4 44.8 45.5 45.6 46.3 45.2 44.8 42.8 43.5 44.0 43.5 43.3 43.1 45.4 45.2 45.5 44.5 43.6 42.8 38.7 39.0 41.7

0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Male Female Source: Reference from the Ministry of Justice

Appendix-23 Changes in the Number of Japanese Overseas Travelers by Age and Gender Total Total Total Total 10.07 mil. 9.70 mil. Total 9.53 mil. 9.3 mil. people people 9.28 mil. 50 people people Total 48 people 47 44 8.42 mil. 45 Total 149 people Total 7.69 mil. 139 7.78 mil. 132 Total 138 44 128 people people 7.37 mil. Total 6.94 mil. (70 and over) 38 40 people 118 (60 - 69) 190 39 people 187 106 105 189 35 (50 - 59) 176 190 97 (40 - 49) 118 88 (30 - 39) 107 107 102 (20 - 29) 98 240 126 (10 - 19) 234 222 112 120 233 117 225 (0 - 9) 112

162 153 149 139 129 197 187 186 181 173

192 178 180 166 154 101 111 107 103 99

35 46 39 51 39 49 39 49 38 48 28 28 31 30 30 29 29 28 29 29 Male Female Male Female Male Female Male Female Male Female 2011 2012 2013 2014 2015

Source: Reference from the Ministry of Justice

21

Appendix-24 Passenger Traffic of Departing Japanese Overseas Travelers (1,000 people) By air Port

Other By sea Total Subtotal New Narita Haneda Chubu Kansai Fukuoka Naha regional Year Chitose airports 15,791 90 8,751 640 1,782 3,337 633 42 516 196 15,987 2008 (98.8) (0.6) (54.7) (4.0) (11.1) (20.9) (4.0) (0.3) (3.2) (1.2) (100.0) 15,240 103 8,281 780 1,576 3,184 676 46 595 205 15,446 2009 (98.7) (0.7) (53.6) (5.1) (10.2) (20.6) (4.4) (0.3) (3.9) (1.3) (100.0) 16,450 114 8,713 1,194 1,640 3,349 732 45 663 187 16,637 2010 (98.9) (0.7) (52.4) (7.2) (9.9) (20.1) (4.4) (0.3) (4.0) (1.1) (100.0) 16,798 132 7,590 2,606 1,617 3,389 816 56 592 197 16,994 2011 (98.8) (0.8) (44.7) (15.3) (9.5) (19.9) (4.8) (0.3) (3.5) (1.2) (100.0) 18,280 155 8,320 2,838 1,669 3,623 918 61 697 210 18,491 2012 (98.9) (0.8) (45.0) (15.3) (9.0) (19.6) (5.0) (0.3) (3.8) (1.1) (100.0) 17,308 137 8,052 2,664 1,530 3,439 861 58 568 165 17,473 2013 (99.1) (0.8) (46.1) (15.2) (8.8) (19.7) (4.9) (0.3) (3.3) (0.9) (100.0) 16,746 123 7,069 3,502 1,446 3,225 838 66 476 158 16,903 2014 (99.1) (0.7) (41.8) (20.7) (8.6) (19.1) (5.0) (0.4) (2.8) (0.9) (100.0) 16,081 116 6,509 3,828 1,368 3,029 781 73 377 132 16,214 2015 (99.2) (0.7) (40.1) (23.6) (8.4) (18.7) (4.8) (0.4) (2.3) (0.8) (100.0) Source: Reference from the Ministry of Justice Note: Figures in parentheses refer to the share (%) of individual airport(s).

Appendix-25 Breakdown of Japanese Overseas Travelers’ Durations of Stay 5 or fewer days 10 or fewer days 15 or fewer days 20 or fewer days 21 days to 1 month 1 month to 2 months 2 months to 3 months 3 months to 6 months

2011 61.0 24.7 4.7 1.72 .4 2.21 .32 .0

2.3

2012 61.0 24.9 4.6 1.7 2.2 2.0

2.4 1.4

2013 58.6 26.2 5.0 1.7 2.4 2.2

2.6 1.5

2014 58.0 26.3 5.1 1.8 2.5 2.4

2.6 1.5

2015 58.1 25.7 5.1 1.8 2.6 2.5

1.6

Source: Reference from the Ministry of Justice Note: Calculated based on the number of returning Japanese nationals whose duration of stay was no more than 6 months.

22

Appendix-26 Changes in the Number of International Visitors to Japan by Country/Region

2008 2009 2010 2011 2012 2013 2014 2015 2016 YoY YoY YoY YoY YoY YoY YoY YoY YoY Region Country / Region Share Share Share Share Chan Share Share Share Share Share People Change People Change People Change People People Change People Change People Change People Change People Change (%) (%) (%) (%) ge (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) U.S.A. 768,345 9.2 94.2 699,919 10.3 91.1 727,234 8.4 103.9 565,887 9.1 77.8 716,709 8.6 126.7 799,280 7.7 111.5 891,668 6.6 111.6 1,033,258 5.2 115.9 1,242,702 5.2 120.3 North Canada 168,307 2.0 101.4 152,756 2.2 90.8 153,303 1.8 100.4 101,299 1.6 66.1 135,355 1.6 133.6 152,766 1.5 112.9 182,865 1.4 119.7 231,390 1.2 126.5 273,211 1.1 118.1 America Mexico 24,194 0.3 85.8 16,454 0.2 68.0 19,248 0.2 117.0 13,080 0.2 68.0 18,502 0.2 141.5 23,338 0.2 126.1 30,436 0.2 130.4 36,808 0.2 120.9 43,524 0.2 118.2 Other 6,279 0.1 90.5 5,488 0.1 87.4 6,111 0.1 111.4 4,780 0.1 78.2 5,835 0.1 122.1 6,597 0.1 113.1 7,348 0.1 111.4 9,150 0.0 124.5 10,963 0.0 119.8 Subtotal 967,125 11.6 95.1 874,617 12.9 90.4 905,896 10.5 103.6 685,046 11.0 75.6 876,401 10.5 127.9 981,981 9.5 112.0 1,112,317 8.3 113.3 1,310,606 6.6 117.8 1,570,400 6.5 119.8 Brazil 20,981 0.3 111.3 16,899 0.2 80.5 21,393 0.2 126.6 18,470 0.3 86.3 32,111 0.4 173.9 27,106 0.3 84.4 32,310 0.2 119.2 34,017 0.2 105.3 36,886 0.2 108.4 South America Other 17,586 0.2 96.9 16,582 0.2 94.3 18,088 0.2 109.1 13,292 0.2 73.5 19,040 0.2 143.2 22,824 0.2 119.9 24,563 0.2 107.6 40,181 0.2 163.6 41,099 0.2 102.3 Subtotal 38,567 0.5 104.2 33,481 0.5 86.8 39,481 0.5 117.9 31,762 0.5 80.4 51,151 0.6 161.0 49,930 0.5 97.6 56,873 0.4 113.9 74,198 0.4 130.5 77,985 0.3 105.1 U.K. 206,564 2.5 93.1 181,460 2.7 87.8 184,045 2.1 101.4 140,099 2.3 76.1 173,994 2.1 124.2 191,798 1.9 110.2 220,060 1.6 114.7 258,488 1.3 117.5 292,457 1.2 113.1 France 147,580 1.8 107.1 141,251 2.1 95.7 151,011 1.8 106.9 95,438 1.5 63.2 130,412 1.6 136.6 154,892 1.5 118.8 178,570 1.3 115.3 214,228 1.1 120.0 253,445 1.1 118.3 Germany 126,207 1.5 100.8 110,692 1.6 87.7 124,360 1.4 112.3 80,772 1.3 65.0 108,898 1.3 134.8 121,776 1.2 111.8 140,254 1.0 115.2 162,580 0.8 115.9 183,287 0.8 112.7 Italy 56,243 0.7 104.1 59,607 0.9 106.0 62,394 0.7 104.7 34,035 0.5 54.5 51,801 0.6 152.2 67,228 0.6 129.8 80,531 0.6 119.8 103,198 0.5 128.1 119,252 0.5 115.6 Russia 66,270 0.8 103.2 46,952 0.7 70.8 51,457 0.6 109.6 33,793 0.5 65.7 50,176 0.6 148.5 60,502 0.6 120.6 64,077 0.5 105.9 54,365 0.3 84.8 54,838 0.2 100.9 Spain 40,852 0.5 122.0 42,484 0.6 104.0 44,076 0.5 103.7 20,814 0.3 47.2 35,207 0.4 169.2 44,461 0.4 126.3 60,542 0.5 136.2 77,186 0.4 127.5 91,849 0.4 119.0 Netherlands 34,487 0.4 103.6 31,186 0.5 90.4 32,837 0.4 105.3 23,450 0.4 71.4 30,266 0.4 129.1 33,861 0.3 111.9 39,866 0.3 117.7 49,973 0.3 125.4 58,249 0.2 116.6 Europe Sweden 30,129 0.4 101.1 26,384 0.4 87.6 29,188 0.3 110.6 21,806 0.3 72.2 30,458 0.4 139.7 36,206 0.3 118.9 40,125 0.3 110.8 46,977 0.2 117.1 49,624 0.2 105.6 Switzerland 24,364 0.3 101.5 23,091 0.3 94.8 26,005 0.3 112.6 16,410 0.3 63.1 24,329 0.3 148.3 28,322 0.3 116.4 33,150 0.2 117.0 40,398 0.2 121.9 44,232 0.2 109.5 Belgium 15,773 0.2 106.4 13,899 0.2 88.1 15,981 0.2 115.0 10,708 0.2 67.0 14,608 0.2 136.4 16,558 0.2 113.3 18,934 0.1 114.3 24,354 0.1 128.6 30,004 0.1 123.2 Denmark 14,486 0.2 101.3 13,116 0.2 90.5 14,606 0.2 111.4 10,821 0.2 74.1 13,594 0.2 125.6 15,065 0.1 110.8 17,901 0.1 118.8 21,717 0.1 121.3 23,830 0.1 109.7 Ireland 12,513 0.1 91.5 10,450 0.2 83.5 10,738 0.1 102.8 8,294 0.1 77.2 10,358 0.1 124.9 11,258 0.1 108.7 12,596 0.1 111.9 14,318 0.1 113.7 16,369 0.1 114.3 Other 111,255 1.3 100.3 99,513 1.5 89.4 106,468 1.2 107.0 72,839 1.2 69.1 101,739 1.2 139.7 122,205 1.2 120.1 142,125 1.1 116.3 177,188 0.9 124.7 204,596 0.9 115.5 Subtotal 886,723 10.6 101.0 800,085 11.8 90.2 853,166 9.9 106.6 569,279 9.2 66.7 775,840 9.3 136.3 904,132 8.7 116.5 1,048,731 7.8 116.0 1,244,970 6.3 118.7 1,422,032 5.9 114.2 Africa 24,498 0.3 104.7 20,621 0.3 84.2 22,665 0.3 109.9 19,361 0.3 85.4 24,725 0.3 127.7 26,697 0.3 108.0 28,336 0.2 106.1 31,918 0.2 112.6 33,770 0.1 105.8 South Korea 2,382,397 28.5 91.6 1,586,772 23.4 66.6 2,439,816 28.3 153.8 1,658,073 26.7 68.0 2,042,775 24.4 123.2 2,456,165 23.7 120.2 2,755,313 20.5 112.2 4,002,095 20.3 145.3 5,090,302 21.2 127.2 China 1,000,416 12.0 106.2 1,006,085 14.8 100.6 1,412,875 16.4 140.4 1,043,246 16.8 73.8 1,425,100 17.1 136.6 1,314,437 12.7 92.2 2,409,158 18.0 183.3 4,993,689 25.3 207.3 6,372,948 26.5 127.6 Taiwan 1,390,228 16.6 100.4 1,024,292 15.1 73.7 1,268,278 14.7 123.8 993,974 16.0 78.4 1,465,753 17.5 147.5 2,210,821 21.3 150.8 2,829,821 21.1 128.0 3,677,075 18.6 129.9 4,167,504 17.3 113.3 Hong Kong 550,190 6.6 127.3 449,568 6.6 81.7 508,691 5.9 113.2 364,865 5.9 71.7 481,665 5.8 132.0 745,881 7.2 154.9 925,975 6.9 124.1 1,524,292 7.7 164.6 1,839,189 7.7 120.7 Thailand 191,881 2.3 114.6 177,541 2.6 92.5 214,881 2.5 121.0 144,969 2.3 67.5 260,640 3.1 179.8 453,642 4.4 174.0 657,570 4.9 145.0 796,731 4.0 121.2 901,458 3.7 113.1 Singapore 167,894 2.0 110.6 145,224 2.1 86.5 180,960 2.1 124.6 111,354 1.8 61.5 142,201 1.7 127.7 189,280 1.8 133.1 227,962 1.7 120.4 308,783 1.6 135.5 361,804 1.5 117.2 Asian Malaysia 105,663 1.3 104.7 89,509 1.3 84.7 114,519 1.3 127.9 81,516 1.3 71.2 130,183 1.6 159.7 176,521 1.7 135.6 249,521 1.9 141.4 305,447 1.5 122.4 394,262 1.6 129.1 Indonesia 66,593 0.8 103.8 63,617 0.9 95.5 80,632 0.9 126.7 61,911 1.0 76.8 101,460 1.2 163.9 136,797 1.3 134.8 158,739 1.2 116.0 205,083 1.0 129.2 270,947 1.1 132.1 Philippines 82,177 1.0 91.8 71,485 1.1 87.0 77,377 0.9 108.2 63,099 1.0 81.5 85,037 1.0 134.8 108,351 1.0 127.4 184,204 1.4 170.0 268,361 1.4 145.7 347,860 1.4 129.6 India 67,323 0.8 99.6 58,918 0.9 87.5 66,819 0.8 113.4 59,354 1.0 88.8 68,914 0.8 116.1 75,095 0.7 109.0 87,967 0.7 117.1 103,084 0.5 117.2 123,007 0.5 119.3 Other 149,065 1.8 116.2 140,990 2.1 94.6 163,584 1.9 116.0 141,300 2.3 86.4 184,249 2.2 130.4 248,799 2.4 135.0 332,981 2.5 133.8 461,203 2.3 138.5 558,943 2.3 121.2 Subtotal 6,153,827 73.7 100.4 4,814,001 70.9 78.2 6,528,432 75.8 135.6 4,723,661 76.0 72.4 6,387,977 76.4 135.2 8,115,789 78.3 127.0 10,819,211 80.7 133.3 16,645,843 84.3 153.9 20,428,224 85.0 122.7 Australia 242,031 2.9 108.8 211,659 3.1 87.5 225,751 2.6 106.7 162,578 2.6 72.0 206,404 2.5 127.0 244,569 2.4 118.5 302,656 2.3 123.8 376,075 1.9 124.3 445,237 1.9 118.4 New Zealand 33,682 0.4 97.0 31,567 0.5 93.7 32,061 0.4 101.6 23,996 0.4 74.8 31,853 0.4 132.7 36,954 0.4 116.0 41,622 0.3 112.6 49,402 0.3 118.7 56,323 0.2 114.0 Oceania Other 3,275 0.0 92.7 2,987 0.0 91.2 3,060 0.0 102.4 2,576 0.0 84.2 3,256 0.0 126.4 3,363 0.0 103.3 3,061 0.0 91.0 3,549 0.0 115.9 3,981 0.0 112.2 Subtotal 278,988 3.3 107.0 246,213 3.6 88.3 260,872 3.0 106.0 189,150 3.0 72.5 241,513 2.9 127.7 284,886 2.7 118.0 347,339 2.6 121.9 429,026 2.2 123.5 505,541 2.1 117.8 No nationality 1,107 0.0 117.8 640 0.0 57.8 663 0.0 103.6 493 0.0 74.4 498 0.0 101.0 489 0.0 98.2 660 0.0 135.0 848 0.0 128.5 1,101 0.0 129.8 T otal 8,350,835 100.0 100.0 6,789,658 100.0 81.3 8,611,175 100.0 126.8 6,218,752 100.0 72.2 8,358,105 100.0 134.4 10,363,904 100.0 124.0 13,413,467 100.0 129.4 19,737,409 100.0 147.1 24,039,053 100.0 121.8 Source: Reference from the Japan National Tourism Organization (JNTO). Note: Figures for 2016 are preliminary.

Appendix-27 Changes in the Number of International Visitors to Japan by Country/Region (10,000 people) 700

600

500

400

300

200

100

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

South Korea China Taiwan U.S.A. Hong Kong Australia Thailand U.K. Singapore Canada France Malaysia Germany India Russia

Source: Reference from the Japan National Tourism Organization (JNTO). Note: Figures for 2016 are preliminary.

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Appendix-28 Total Number of Guest Nights of International Visitors to Japan by Country/Region (2016)

Vietnam, 35 , 1% Spain, 48 , 1% Italy, 53 , 1% Canada, 57 , 1% Philippines, 64 , 1% India, 34 , 1% Germany, 72 , 1% Indonesia, 78 , 1% Russia, 20 , 0% France, 84 , 1% Malaysia, 94 , 1% U.K., 98 , 2% Singapore, 152 , 2% Australia, 162 , 3% China Thailand, 240 , 4% 1,683 27%

United States 434 7%

Hong Kong 520 Taiwan 8% 1,062 17% Other 538 9% South Korea 780 12% (10,000 guest nights)

Source: Overnight Travel Statistics Survey (JTA) Notes: 1. The term “international visitor” refers to anyone who does not have an address in Japan. 2. The survey was for facilities with at least 10 employees. 3. Figures for 2016 are preliminary. Final figures are subject to slight change.

Appendix-29 Changes in the Number of International Visitors to Japan by Month (2016)

(10,000 people) Number of international visitors Total for 2016: 24.039 million people YoY Change (21.8% increase from 19.737 mil. in 2015) (%) 260 95 240 230 214 220 208 205 201 199 205 200 189 189 192 188 185 75 180 160 140 55

120 52.0 100 35 80 36.4 60 31.7 40 23.9 15 18.0 19.7 19.0 20 15.3 16.8 13.8 15.7 12.7 0 (20) -5 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Source: Reference from the Japan National Tourism Organization (JNTO).

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Appendix-30 Changes in the Visiting Rates to Top-Ranking Japanese Prefectures That International Visitors Visit (%) 2009 2010 2011 2012 2013 2014 2015 2016 1 Tokyo 58.8 Tokyo 60.3 Tokyo 50.6 Tokyo 51.3 Tokyo 47.3 Tokyo 51.4 Tokyo 52.1 Tokyo 48.2

2 Osaka 24.4 Osaka 26.1 Osaka 25.2 Osaka 24.0 Osaka 25.1 Osaka 27.9 Chiba 44.4 Chiba 39.7 3 Kyoto 20.6 Kyoto 24.0 Kyoto 16.7 Kyoto 17.3 Kyoto 18.9 Kyoto 21.9 Osaka 36.3 Osaka 39.1

4 Kanagawa 16.7 Kanagawa 17.8 Kanagawa 11.8 Kanagawa 12.7 Kanagawa 11.2 Kanagawa 12.3 Kyoto 24.4 Kyoto 27.5 5 Chiba 12.7 Chiba 15.0 Fukuoka 9.7 Chiba 9.8 Chiba 9.6 Chiba 11.7 Kanagawa 11.3 Fukuoka 9.9 Total Visit 230.2 248.4 192.9 198.8 201.5 214.3 262.4 257.7 Rate

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA) and JNTO's Visitor Arrival Survey (JNTO) Notes: 1. The visitor rate was calculated by dividing the number of respondents who answered "Visited a certain area during trip" by the number of all respondents, then multiplying by 100. 2. The term "total visitor rate" refers to the total figure obtained by adding together the visitor rates of all prefectures. 3. Figures up to 2010 and those since 2011 may not be directly compared, because the figures are based on the JNTO Visitor Arrival Survey up to 2010, and then on the Consumption Trend Survey for International Visitors to Japan from 2011. 4. Since the 2015 figures, the locations of embarkation/departure airports and seaports have been regarded as destinations.

Appendix-31 Changes in the Number of International Visitors to Japan by Purpose

(people) Number of people Total Tourists Business travelers and others

8,346,969 5,954,180 2,392,789 2007 [100.0] [71.3] [28.7] (113.8) (118.3) (104.0) 8,350,835 6,048,681 2,302,154 2008 [100.0] [72.4] [27.6] (100.0) (101.6) (96.2) 6,789,658 4,759,833 2,029,825 2009 [100.0] [70.1] [29.9] (81.3) (78.7) (88.2) 8,611,175 6,361,974 2,249,201 2010 [100.0] [73.9] [26.1] (126.8) (133.7) (110.8) 6,218,752 4,057,235 2,161,517 2011 [100.0] [65.2] [34.8] (72.2) (63.8) (96.1) 8,358,105 6,041,645 2,316,460 2012 [100.0] [72.3] [27.7] (134.4) (148.9) (107.2) 10,363,904 7,962,517 2,401,387 2013 [100.0] [76.8] [23.2] (124.0) (131.8) (103.7) 13,413,467 10,880,604 2,532,863 2014 [100.0] [81.1] [18.9] (129.4) (136.6) (105.5) 19,737,409 16,969,126 2,768,283 2015 [100.0] [86.0] [14.0] (147.1) (156.0) (109.3) 24,039,053 21,049,029 2,990,024 2016 [100.0] [87.6] [12.4] (121.8) (124.0) (108.0) Source: A reference from the JNTO Notes: 1. Each [ ] refers to the ratio of tourists (or business travelers and others) to the total number of international visitors to Japan, and each ( ) refers to the year-on-year change (%). 2. Figures for 2007 to 2015 are final. Figures for 2016 are preliminary.

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Appendix-32 Breakdown of International Visitors by Purpose (2016)

Other 9.9%

Business 17.4%

Tourism and Leisure 72.7%

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

Appendix-33 Breakdown of International Visitors to Japan by Purpose, by Country/Region (2016) 0% 20% 40% 60% 80% 100%

South Korea 78.1 14.3 7.6 Taiwan 82.9 10.1 7.1 Hong Kong 88.9 8.1 2.9 China 75.1 15.5 9.4 Thailand 71.8 15.3 13.0 Singapore 67.7 26.8 5.5 Malaysia 59.2 27.7 13.1 Indonesia 52.1 35.0 12.9 Philippines 53.3 24.9 21.7 Vietnam 33.7 41.2 25.1 India 13.2 74.4 12.4 U.K. 50.1 34.3 15.6 Germany 39.7 44.1 16.2 France 60.6 21.9 17.5 Italy 56.8 27.7 15.5 Spain 69.9 14.7 15.4 Russia 42.9 30.0 27.1 U.S.A. 42.7 36.5 20.8 Canada 59.5 17.5 23.0 Australia 77.7 9.4 12.9 Other 52.5 33.7 13.8

Tourism and Leisure Business Other

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

26

Appendix-34 Breakdown of International Visitors to Japan by Travel Form and by Country/Region (all purposes) (2016) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% South Korea 11.2 6.9 82.0 Taiwan 32.2 15.5 52.3 Hong Kong 10.2 22.7 67.1 China 35.9 16.4 47.7 Thailand 21.0 8.3 70.7 Singapore 7.8 6.4 85.8 Malaysia 16.7 10.8 72.5 Indonesia 12.9 8.5 78.5 Philippines 5.2 6.0 88.8 Vietnam 13.4 11.3 75.3 India 4.6 2.2 93.1 U.K. 5.2 8.2 86.6 Germany 7.2 5.1 87.7 France 4.6 5.3 90.1 Italy 9.0 10.1 80.9 Spain 6.6 6.6 86.7 Russia 5.3 8.2 86.5 U.S.A. 6.0 3.6 90.4 Canada 6.5 4.9 88.6 Australia 5.9 6.3 87.8 Other 5.1 5.1 89.8 Group tour partcipants Package for individual travelers Independent travel Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

Appendix-35 Breakdown of International Visitors to Japan by Travel Form and by Country/Region (Tourism & Leisure) (2016)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% South Korea 12.2 7.8 80.0 Taiwan 36.0 17.2 46.8 Hong Kong 10.9 25.0 64.1 China 45.1 20.3 34.6 Thailand 24.8 9.6 65.6 Singapore 10.8 8.1 81.0 Malaysia 21.8 14.9 63.3 Indonesia 18.8 10.6 70.5 Philippines 7.2 8.9 83.9 Vietnam 27.1 22.4 50.5 India 18.7 3.7 77.5 U.K. 7.6 14.5 77.9 Germany 11.2 9.2 79.6 France 5.9 7.2 86.8 Italy 10.6 12.1 77.3 Spain 6.7 6.2 87.1 Russia 5.1 14.4 80.4 U.S.A. 10.3 5.8 83.9 Canada 9.4 6.1 84.5 Australia 6.5 7.3 86.3 Other 7.9 7.6 84.5 Group tour participants Package for individual travelers Independent travel

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

27

Appendix-36 Changes in Passenger Traffic for International Visitors to Japan (1,000 people) By air Port

Other By sea Total Subtotal New Narita Haneda Chubu Kansai Fukuoka Naha regional Year Chitose airports 8,486 301 4,376 441 596 1,647 433 84 608 666 9,152 2007 (92.7) (3.3) (47.8) (4.8) (6.5) (18.0) (4.7) (0.9) (6.6) (7.3) (100.0) 8,448 311 4,283 533 596 1,641 426 106 550 698 9,146 2008 (92.4) (3.4) (46.8) (5.8) (6.5) (17.9) (4.7) (1.2) (6.0) (7.6) (100.0) 7,147 298 3,789 512 415 1,349 320 88 376 435 7,581 2009 (94.3) (3.9) (50.0) (6.8) (5.5) (17.8) (4.2) (1.2) (5.0) (5.7) (100.0) 8,741 363 4,196 751 507 1,745 484 140 555 703 9,444 2010 (92.6) (3.8) (44.4) (8.0) (5.4) (18.5) (5.1) (1.5) (5.9) (7.4) (100.0) 6,682 290 2,820 908 417 1,339 407 163 338 453 7,135 2011 (93.6) (4.1) (39.5) (12.7) (5.8) (18.8) (5.7) (2.3) (4.7) (6.4) (100.0) 8,567 390 3,562 1,098 476 1,792 561 231 458 605 9,172 2012 (93.4) (4.3) (38.8) (12.0) (5.2) (19.5) (6.1) (2.5) (5.0) (6.6) (100.0) 10,637 506 4,263 1,293 574 2,323 687 374 616 618 11,255 2013 (94.5) (4.5) (37.9) (11.5) (5.1) (20.6) (6.1) (3.3) (5.5) (5.5) (100.0) 13,560 662 4,932 1,752 699 3,170 884 653 808 583 14,143 2014 (95.9) (4.7) (34.9) (12.4) (4.9) (22.4) (6.3) (4.6) (5.7) (4.1) (100.0) 19,118 948 6,118 2,486 1,009 5,008 1,393 1,078 1,078 571 19,688 2015 (97.1) (4.8) (31.1) (12.6) (5.1) (25.4) (7.1) (5.5) (5.5) (2.9) (100.0)

Source: Reference from the Ministry of Justice Notes: 1. Figures in parentheses refer to the share (%) of individual airport(s). 2. Figures in the table are based on the data from the Ministry of Justice's statistics on immigration control. Meanwhile, JNTO's figures for the number of inbound visitors to Japan (in Figure I-11 etc.) are the number of foreign nationals legally admitted to enter (i.e., those who have an official passport issued by the relevant country), excluding the number of foreign nationals residing in Japan, and then including the number of transit visitors. Therefore, the above figures and the JNTO figures do not match.

Appendix-37 Changes in International Visitors to Japan by Duration of Stay

2010 70.9 17.4 5.5 1.8

2011 71.7 16.2 5.1 1.8

2012 70.8 17.5 5.3 1.7

5.3 2013 70.7 18.5 1.6

2014 70.3 19.9 5.2 1.5

2015 69.1 22.0 5.1 1.3

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 5 or fewer days 10 or fewer days 15 or fewer days 20 or fewer days 21 days to 1 month 1 month to 2 months 2 months to 3 months 3 months to 6 months Source: Reference from the Ministry of Justice Note: The survey was for those staying in Japan for up to 6 months.

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Appendix-38 Tourism Consumption of International Visitors to Japan by Country/Region (2016) Germany, 313, 0.8% (billion yen) Indonesia, 370, 1.0% Italy, 236, 0.6% Philippines, 390, 1.0% Spain, 206, 0.5% India, 177, 0.5% Canada, 423, 1.1% Russia, 105, 0.3% Vietnam, 435, 1.2% France, 479, 1.3% Other Malaysia, 522, 1.4% 1,794 4.8% U.K., 532, 1.4% Singapore, 591, 1.6%

Australia, 1,099, 2.9% China 14,754 Thailand, 1,150, 3% Total: 39.4% U.S.A. 2,130 3.7476 5.7% trillion yen Hong Kong 2,947 7.9%

South Korea 3,577 Taiwan 9.5% 5,245 14.0%

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

29

Appendix-39 Breakdown of International Visitors’ Expenditure in Japan by Country/Region (2016) 0% 50% 100%

All nationalities and regions 40.7 17.4 9.6 18.9 13.3

South Korea 33.0 20.3 11.0 18.9 16.8

Taiwan 18.8 17.5 12.6 30.9 20.2

Hong Kong 18.9 13.0 13.6 32.4 22.1

China 59.0 16.6 6.9 11.0 6.5

Thailand 35.1 21.8 10.4 22.6 10.0

Singapore 27.5 19.4 10.7 21.7 20.7

Malaysia 48.3 18.0 9.1 14.3 10.3

Indonesia 51.8 19.0 8.7 13.5 7.0

Philippines 45.5 21.8 9.8 16.0 6.9

Vietnam 55.8 20.3 6.6 10.1 7.1

India 48.2 16.1 6.7 17.0 12.0

U.K. 53.4 11.8 6.5 14.0 14.4

Germany 48.1 14.6 7.2 18.0 12.2

France 56.7 13.9 6.5 13.2 9.7

Italy 65.3 11.4 5.2 10.7 7.3

Spain 72.6 11.5 3.7 8.5 3.7

Russia 43.0 13.0 9.6 20.2 14.2

U.S.A. 49.5 14.3 8.3 14.7 13.3

Canada 53.0 16.4 5.9 13.7 11.1

Australia 57.3 18.8 6.7 10.6 6.6

Other 55.5 16.6 7.8 12.9 7.3

1st visit 2nd visit 3rd visit 4th to 9th visit 10th visit or more

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

Appendix-40 International Visitors’ Satisfaction and Intent to Revisit Japan

Satisfaction with their Japan trip Intention to revisit Japan 0% 50% 100% 0% 50% 100%

4.2 3.7 2016 50.4 42.7 2.6 2016 59.3 34.2 2.8

4.5 3.9 2015 47.8 44.8 2.9 2015 57.9 35.4 2.8

4.3 4.1 2014 49.5 43.7 2.5 2014 57.6 35.8 2.5

5.0 4.4 2013 43.5 48.1 3.4 2013 56.5 36.1 3.0

Definitely want to visit again Very satisfied Satisfied Want to visit again Slightly satisfied Not satisfied Maybe want to visit again Not sure / Do not want to visit again

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA) 30

Appendix-41 Breakdown of International Visitors’ Travel Expenditure in Japan by Country/Region (2016) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

South Korea 31.4% 25.4% 10.7% 4.3% 27.8% 0.3% Taiwan 26.7% 21.1% 11.2% 3.3% 37.4% 0.2% Hong Kong 25.9% 21.6% 10.8% 2.8% 38.9% 0.0%

China 19.1% 16.8% 8.6%2.2% 53.1% 0.3% Thailand 27.1% 20.3% 13.0% 3.8% 35.6% 0.3% Singapore 35.8% 21.4% 15.3% 2.0% 24.8% 0.8% Malaysia 31.0% 21.0% 15.0% 2.8% 30.2% 0.0% Indonesia 34.5% 16.5% 19.9% 3.7% 25.4% 0.0% Philippines 29.6% 23.6% 12.0% 4.4% 30.4% 0.1% Vietnam 26.5% 29.1% 10.5% 2.2% 31.6% 0.0% India 42.5% 19.0% 13.7% 1.9% 22.9% 0.1% U.K. 44.1% 22.7% 16.5% 3.5% 13.2% 0.0% Germany 46.1% 21.6% 17.4% 3.0% 11.9% 0.1% France 39.9% 21.6% 18.3% 4.1% 16.0% 0.0% Italy 39.7% 22.9% 19.6% 4.7% 12.9% 0.1% Spain 41.2% 21.9% 19.7% 2.9% 14.3% 0.0% Russia 39.7% 22.9% 19.6% 4.7% 12.9% 0.1% U.S.A. 41.2% 21.9% 19.7% 2.9% 14.3% 0.0% Canada 32.4% 16.2% 11.4% 3.8% 34.0% 2.1% Australia 41.2% 24.0% 16.3% 3.2% 15.2% 0.1% Other 35.7% 23.4% 18.4% 3.3% 18.9% 0.2%

Accommodation Food and beverage Transportation Entertainment & leisure Shopping Other

Source: Consumption Trend Survey for Foreigners Visiting Japan (JTA)

Appendix-42 Tourism Consumption of Per Capita Japanese Traveler Per Trip

(Yen / person per trip) 2013 2014 2015 Domestic travel 31,995 30,947 33,750 Overnight trips 48,094 46,717 50,520 Tourism / recreation 53,647 52,777 56,086 Visiting hometown / friends, etc. 39,143 37,058 42,334 Business 45,178 44,056 46,055 Day trips 15,383 15,206 15,758 Tourism / recreation 15,335 15,441 16,125 Visiting hometown / friends, etc. 16,409 14,424 15,646 Business 14,678 15,093 14,556 Overseas travel 253,284 255,770 234,974 Tourism / recreation 271,144 276,712 257,225 Visiting hometown / friends, etc. 236,302 232,000 200,205 Business 210,511 214,875 185,048

Source: Survey of Trends in Travel and Tourism Consumption (JTA) Note: Consumption during “Overseas travel” includes both consumption within Japan and overseas.

31

Appendix-43 Estimated Tourism Consumption (2015) (Billion yen) a b c d=a+b+c e f=d+e Overnight Overseas Travel by Travel Day trips Travel by Japanese Item trips travel nationals international consumption (domestic) (domestic) (spent in Japan) (spent in Japan) visitors to Japan in Japan Travel consumption (during and before/after travel) 16,235 4,594 1,347 22,177 3,305 25,481 YoY change 13.3% 1.4% -6.2% 9.3% 49.8% 13.2%

Expenditure before/after travel 2,174 753 299 3,227 Expenditure before travel 2,073 712 289 3,073 Expenditure after travel 102 42 11 154 Expenditure during travel 13,619 3,841 1,048 18,508 Travel company revenue 251 33 149 434 Transportation 5,356 1,978 803 8,137 Accommodation 3,506 0 19 3,525 Food and beverage 1,888 565 20 2,473 Souvenir and shopping 1,863 851 52 2,766 Facility admissions fees 737 407 1 1,145 Other 18 7 3 28 Vacation home rental 442 0 0 442 g h=d+g Travel by Japanese Overseas nationals travel (including the (spent overseas) amount spent overseas) 2,810 24,987

Source: Research on Economic Impact of (JTA)

Appendix-44 Breakdown of Domestic Tourism Consumption by Type of Tourism (2015)

International visitors to Japan, etc.: 3.3 trillion yen (13.0%) Overseas travel by Japanese nationals (spent in Japan): 1.3 trillion yen (5.3%)

Total: 25.5 Domestic day trips by trillion yen Japanese nationals: 4.6 trillion yen (18.0%)

Domestic overnight trips by Japanese nationals: 16.2 trillion yen (63.7%)

Source: Survey of Trends in Travel and Tourism Consumption (JTA), Balance of Payments (confirmed) (Ministry of Finance and Bank of Japan).

32

Appendix-45 Economic Impact of Tourism Consumption in Japan (2015) (Trillion yen) (Trillion yen) (Million people) Ripple effect on production Effect on added value Effect on employment Tourism Ripple effect Ripple effect Ripple effect consumption Ripple effect Ripple effect Ripple effect (direct (direct (direct (final (direct (direct (direct Direct effect + primary Direct effect + primary Direct effect + primary demand) + primary + primary + primary + secondary + secondary + secondary effect) effect) effect) effect) effect) effect) Economic ripple effect of travel/tourism 25.5 24.2 42.0 52.1 12.1 20.4 25.8 2.31 3.60 4.40 consumption in Japan (2015) Share of all 2.4% 4.2% 5.2% 2.3% 3.8% 4.9% 3.5% 5.4% 6.7% industries * Multiplier (ripple 1.7 2.1 1.7 2.1 1.6 1.9 effect/direct effect) 2014 estimates 22.5 21.5 37.1 46.2 10.7 18.0 22.9 2.03 3.16 3.88

YoY change (2015/2014) 13.2% 12.9% 13.3% 12.9% 12.9% 13.3% 12.9% 13.8% 14.0% 13.5%

* Figures correspond to all industries 2015 output 2015 GDP (nominal) 2015 number of employed people 998.5 tril. yen 530.5 tril. yen 66.17 mil. people

(Billion yen) Ripple effect Direct Effective tax Direct Direct + primary rate effect + primary + secondary effect effect

Indirect taxes 6.1% 736 1,237 1,566

Individual 14.5% 885 1,499 1,854 Direct taxes Corporate 24.7% 470 846 1,184

Total 2,091 3,582 4,604 Share of FY2015 tax revenue 2.1% 3.7% 4.7% (97.5 trillion yen)

Source: Research on Economic Impact of Tourism in Japan (JTA) Note: 2015 tax revenues represent the total obtained by combining the national tax revenues (paid) and local tax revenues (estimated).

Appendix-46 Economic Impact of Tourism Consumption on Japan (2015)

Travel consumption: 25.5 trillion yen (Direct effect on domestic industries:24.2 trillion yen) D i

r Effect on added value 12.1 tril. yen (2.3% of GDP) e c t

e Effect on employ ment 2.31 mil.people(3.5% of total employment) f f e c t Effect on tax revenue 2.1 tril. yen (2.1% of total tax revenue)

Ripple effect

0% 5% Ripple effect on ＊1 production 5.2% 52.1 tril. yen 2.4%

(Induced production C o

value) n t r

＊2 i Effect on added value b

4.9% u t

2.3% i (Induced gross added 25.8 tril. yen o n

t

value) o

t

＊3 h e

Effect on employment 6.7% J a

4.40 mil.people 3.5% p

(Induced employment) a n e s 4 e

＊

Effect on tax revenue e 4.7% c o

(Estimated) 4.6 tril. yen 2.1% n o (Induced tax revenue) m y Ripple effect Direct effect

* 5

Source: Research on Economic Impact of Tourism in Japan (JTA) Notes: 1. Corresponds to output of 998.5 trillion yen in National Accounts of Japan (2015) 2. Corresponds to nominal GDP of 530.5 trillion yen in National Accounts of Japan (2015) 3. Corresponds to payroll employment of 66.17 million people in National Accounts of Japan (2015). 4. Corresponds to 97.5 trillion yen of the total of national tax and local tax revenues (FY2015) 5. "Contribution" stands for the share of the total market. 33

Appendix-47 Economic Impact of Tourism Consumption on Japan by Industry (2015)

Source: Research on Economic Impact of Tourism in Japan (JTA) Note: The ripple effect on production illustrates the extent of the resulting impact of new demand arising in all industries. For example, when travel/tourism spending rises, the ripple effect reflects new production generated in the whole industry as a result of the sale of raw materials (intermediate goods) and the increases in the salaries of employees working for companies that supply such raw materials.

Appendix-48 Changes in Travel-Related Expenditure Per Household (yen) (%) 200,000 20 18.3 18.3 18.3 17.7 17.8 180,000 17.2 18 16.2 16.3 16.2 160,000 16

140,000 14 125,242 119,262 118,486 116,772 120,000 113,682 113,929 113,499 111,074 12 105,307 100,000 10

80,000 8

60,000 6

40,000 4

3.5 3.4 20,000 3.2 3.3 3.1 3.3 3.4 3.4 3.3 2

0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Travel-related Travel-related spending as a percentage of discretionary spending Travel-related spending as a percentage of total spending Source: Household Finances (households with at least two members, excluding households involved in agriculture, forestry and fisheries) (Statistics Japan). Notes: 1. “Discretionary spending refers to the amount spent on dining out, durable goods such as TVs/personal computers, educational entertainment such as books, and sports equipment. 2. “Travel-related spending” refers to the amount spent on accommodations (hotels and tour packages), transportation (railway fares, airfare, toll roads, and fares for other transport) and travel bags.

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Appendix-49 Changes in Passenger Traffic in Japan by Transportation Means (Million people) Railway Japan Railway Private railways Category Tickets other Tickets other than those for than those for Shinkansen Aircraft Ferry commuting commuting(in (included in Year ticket cluded in total) (included in total) total) 2006 22,129 8,740 3,352( 0.7) 303( 0.8) 13,389 5,946( 1.1) 96( 2.0) 3.1( 6.2) 2007 22,680 8,924 3,454( 3.1) 313( 3.2) 13,756 6,144( 3.3) 96( 0.8) 3.0( 2.1) △ 2008 23,021 9,026 3,501( 1.3) 316( 0.8) 13,995 6,294( 2.4) 93( 2.8) 2.8( 8.6) △ △ 2009 22,738 8,853 3,373( 3.6) 290( 8.2) 13,885 6,208( 1.4) 84( 9.6) 2.4( 13.7) △ △ 2010 22,796 8,876 3,380( 0.2) 295( 2.0) 13,920 6,262( 0.9) 84( 0.5) 2.2( 6.5) Passengers △ △ △ △ △ 2011 22,466 8,755 3,291( 2.6) 299( 1.2) 13,711 6,091( 2.7) 78( 8.0) 2.2( 1.9) △ 2012 23,099 8,957 3,439( 4.5) 320( 7.1) 14,142 6,358( 4.4) 85( 9.5) 2.2( 0.2) △ △ △ △ 2013 23,281 9,019 3,492( 1.5) 329( 2.7) 14,262 6,401( 1.6) 91( 7.1) 2.3( 2.7) △ 2014 23,734 9,165 3,535( 1.2) 339( 3.2) 14,569 6,448( 0.7) 95( 3.9) 2.2( 4.1) 2015 24,158 9,266 3,620( 2.4) 363( 7.1) 14,892 6,623( 2.7) 96( 1.4) 2.3( 7.6) △ 2016 24,544 9,388 3,653( 0.9) 370( 1.8) 15,156 6,724( 1.5) 97( 1.4) 2.3( 0.7) Source: Monthly Economic Report (March issue, 2016) (MLIT). Notes: 1. Figures in ( ) indicate the percentage year on year, and the mark indicates a decrease. 2. Figures for 2016 are preliminary. 3. Figures for ferry service indicate the passengers for long-distance△ travel.

Appendix-50 People’s Priorities in the Near Future 0 5 10 15 20 25 30 35 40 (%) 35.5 Leisure/recreation 37.3 37.5 31.4 Income 33.4 34.3 30.4 Asset management/Savings 32.8 33.4 28.6 Diet 29.7 30.2 24.2 Learning/capacity-building 24.4 26.5 23.1 Living environment 26.1 25.2 Durable consumer goods such as automobiles, electronics and 8.5 8.9 furniture 8.6 5.9 Clothing 6.1 5.6 2.0 Survey for July, 2016 (N=6281 people, Other 1.9 1.7 M.T.=201.3%) 10.0 Survey for June, 2015 (N=5839 people, None 7.4 7.6 M.T.=209.5%) 1.7 Survey for June, 2014 (N=6254 people, Don't know 1.5 1.1 M.T.=211.8%)

Source: Public Opinion Survey Concerning People's Lifestyles (Public Relations Office, Minister's Secretariat, Cabinet Office)

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Appendix-51 Changes in the Trends of People’s Priorities in the Near Future

Leisure/recreation Living environment Diet Durable consumer goods (%) 40 37.7 37.5 37.0 37.3 37.2 37.1 37.1 36.636.2 36.2 36.8 35.8 35.5 35.3 34.8 35.1 35 33.8 33.9 36.9 35.3 31.631.7 35.5 34.4 33.7 33.2 33.3 30.3 32.3 30.8 30.2 30.0 29.5 29.7 30 29.4 29.5 29.0 28.1 27.6 28.3 27.1 27.6 26.7 28.3 26.5 28.6 26.3 26.4 26.2 26.3 26.1 28.0 25.7 25.8 25.8 25.4 25.5 25.3 25.1 25.1 25.2 25.2 25.2 25 24.1 25.4 23.5 25.7 25.2 25.0 23.1 25.0 23.3 25.1 22.6 24.8 22.8 21.8 24.1 22.9 22.2 24.2 23.1 21.9 23.1 23.1 23.1 20.7 22.6 21.3 19.9 19.8 19.5 21.5 21.2 20 20.3 20.9 20.7 16.5 19.5 17.3 17.1 18.8 18.1 16.3 16.3 18.1 15.4 15.1 14.5 15.1 15.0 16.3 15 16.0 15.5 15.2 13.0 14.5 12.6 13.6 13.2 13.4 13.2 10 11.0 9.5 8.6 8.3 7.6 7.7 8.1 7.8 6.7 7.5 6.8 8.7 8.8 5.7 6.2 6.0 5.9 8.6 8.9 8.5 5.1 4.8 8.0 7.4 4.6 4.6 4.4 4.4 5 6.3 5.2 5.2 4.0 4.1 4.1 3.5 3.7 4.0 3.8 5.8 5.6 3.1 4.0

0 9 2 3 4 5 8 9 0 2 3 4 5 5 6 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 7 6 1 6 1 0 0 0 0 0 0 1 1 1 1 1 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 0 1 0 0 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

...... y y y y y y y y y y y y y y y y y y y y y y y y t t c n n n n n n n n n n n v v p l l l a a a a a a a a a a a a a a a a a a a a a c c e e u u u u u u u u u u u o o u u u J J J J J J J J J J J J J J O O S M M M M M M M M M M M M M M M M M M M M M D N N

Source: Public Opinion Survey on National Lifestyle (Public Relations Office, Minister's Secretariat, Cabinet Office) Notes: 1. “Durable consumer goods” refers to automobiles, electronics, furniture and other durable consumer goods. 2. Direct comparisons may not be drawn between the results of 1999 or earlier and 2001 or after, because only one response was allowed in the surveys in 1999 or earlier, whereas multiple answers were allowed from 2001.

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Appendix-52 Top 10 Leisure Activities Potential Demand (2015)

(%) 0 10 20 30 40 50 60

11.6 Overseas travel 26.6 54.5 Domestic leisure travel 16.8 2.4 Passenger cruises 12.3 28.6 Onsen (hot spring) and spa facilities 11.9 20.9 Barbecuing 9.8 17.9 Picnicking, hiking and walking 9.4 10.0 .0 Theater going 8.2 15.4 Events and exhibitions 8.1 6.5 Yoga, Pilates 7.8 2.5 Auto camping 7.7

Participation rate Latent demand

Source: White Paper of Leisure 2016 (Japan Productivity Center) Note: "Latent demand (%)"= the percentage of those who wish to participate in an activity - the percentage of those who have participated in the activity.

Appendix-53 Satisfaction with Current Lifestyle (2016)

Applicable Satisfied Relatively Don't Satisfied Satisfied Dissatisfied Dissatisfied Neither persons overall dissatisfied know Units People % % % % % % % % Total 6,281 70.1 10.7 59.4 28.5 22.6 5.9 1.3 0.1 [Gender] Male 3,007 68.7 9.7 59.0 30.1 23.9 6.2 1.1 0.1 Female 3,274 71.4 11.7 59.7 27.0 21.4 5.6 1.5 0.1 [Age] 18-29 480 83.8 20.6 63.1 15.4 13.3 2.1 0.8 - 30-39 777 73.1 12.6 60.5 25.9 22.4 3.5 1.0 - 40-49 1,000 67.4 7.9 59.5 31.5 26.2 5.3 1.1 - 50-59 963 66.1 7.9 58.3 32.7 27.5 5.2 1.1 - 60-69 1,462 69.2 9.6 59.6 29.3 22.0 7.3 1.5 - 70 and over 1,599 69.4 11.4 58.0 28.6 21.0 7.7 1.6 0.4 [Gender/Age] Male 3,007 68.7 9.7 59.0 30.1 23.9 6.2 1.1 0.1 18-29 243 82.7 21.0 61.7 16.5 14.4 2.1 0.8 - 30-39 365 70.7 10.7 60.0 28.5 23.3 5.2 0.8 - 40-49 463 63.9 6.0 57.9 35.0 28.7 6.3 1.1 - 50-59 465 64.7 6.0 58.7 34.2 29.2 4.9 1.1 - 60-69 743 68.1 9.3 58.8 30.7 22.9 7.8 1.2 - 70 and over 728 69.2 10.4 58.8 29.3 22.1 7.1 1.1 0.4 (Female) 3,274 71.4 11.7 59.7 27.0 21.4 5.6 1.5 0.1 18-29 237 84.8 20.3 64.6 14.3 12.2 2.1 0.8 - 30-39 412 75.2 14.3 60.9 23.5 21.6 1.9 1.2 - 40-49 537 70.4 9.5 60.9 28.5 24.0 4.5 1.1 - 50-59 498 67.5 9.6 57.8 31.3 25.9 5.4 1.2 - 60-69 719 70.4 9.9 60.5 27.8 21.0 6.8 1.8 - 70 and over 871 69.6 12.3 57.3 28.1 20.0 8.2 2.0 0.3 Source: Public Opinion Survey on National Lifestyle (Public Relations Office, Minister's Secretariat, Cabinet Office) (July 2016)

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Appendix-54 Working Hours and Salaries of the Accommodation Industry (2016) Enterprise size: 10 employees or more Actual Actual Annual Number of Number of Contractual Special Division Length of Age Scheduled Overtime Cash Scheduled Cash Service Hours Hours Earnings Cash Earnings Worked Worked Earnings Units years old years hours hours 1,000 yen 1,000 yen 1,000 yen Accommodation industry 41.6 8.6 171 12 255.6 235.0 339.1 Gender Male 43.5 9.9 172 13 285.7 262.5 412.1 Female 38.9 6.9 169 12 213.6 196.6 237.4 Academic Lower secondary school 52.5 9.8 171 10 225.7 210.3 142.9 Career

Upper secondary school 43.7 9.0 171 12 242.6 223.8 267.3

Technical college and junior college 37.7 8.1 170 14 261.4 237.5 392.9

University/graduate school 38.6 8.2 170 12 286.6 264.1 491.9 Age 0-19 19.1 0.9 171 12 173.5 158.8 44.9 20-24 22.6 2.1 170 14 199.7 179.8 182.9 25-29 27.4 3.9 170 16 222.9 197.5 275.7 30-34 32.5 6.3 169 16 250.7 224.1 372.5 35-39 37.6 8.2 171 14 266.7 240.8 399.6 40-44 42.5 11.0 171 13 292.4 266.8 492.2 45-49 47.4 12.2 172 11 308.1 287.8 515.5 50-54 52.5 12.5 173 9 303.8 287.9 458.7 55-59 57.6 13.3 171 9 283.3 268.0 367.5 60-64 62.4 11.9 170 8 228.8 216.0 155.2 65-69 67.2 11.8 169 7 201.9 192.6 80.7 70 and over 73.1 13.4 170 6 190.0 182.8 56.7 c.f., All industries 42.2 11.9 164 13 333.7 304.0 894.2 Gender Male 43.0 13.3 165 16 370.9 335.2 1043.5 Female 40.7 9.3 163 8 262.7 244.6 609.9 Academic Lower secondary school 49.7 13.8 169 17 275.5 244.3 410.9 Career

Upper secondary school 44.1 12.6 166 15 294.4 262.7 652.3

Technical college and junior college 40.4 10.6 164 10 300.2 276.0 761.1

University/graduate school 40.3 11.6 162 13 401.9 371.7 1285.9 Age 0-19 19.1 0.9 168 12 191.8 174.0 119.5 20-24 23.0 2.1 166 14 228.3 204.5 353.4 25-29 27.5 4.4 164 17 270.8 237.3 643.4 30-34 32.5 7.0 164 17 308.7 271.7 785.2 35-39 37.6 9.8 164 16 336.9 301.0 899.4 40-44 42.5 12.8 165 14 362.4 328.6 1027.1 45-49 47.4 15.7 164 13 388.2 357.3 1186.6 50-54 52.5 18.3 164 11 401.3 374.8 1253.6 55-59 57.4 20.3 164 10 387.0 364.1 1164.2 60-64 62.3 17.8 164 8 286.6 271.5 598.1 65-69 67.1 15.4 165 7 267.1 255.4 332.4 70 and over 73.4 17.9 164 5 262.4 253.9 268.9

Source: Basic Survey on Wage Structure FY 2016 (Ministry of Health, Labor and Welfare) Notes: 1. The survey was of ordinary workers (excluding part-time workers) who are employed by private enterprises with at least 10 regular workers. 2. Figures for “actual number of scheduled hours worked,” “actual number of overtime worked,” “contractual cash earnings” and “scheduled cash earnings are as of June 2016. 3. “Annual special cash earnings” refers to the combined amount of the annual bonus from January to December 2015 with other special bonuses (e.g., term-end allowance).

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Appendix-55 Aggregated Data on Businesses - Cross-Industrial Aggregated Data (Sales (Revenue), etc.) Sales Sales Sales Number of Number of (revenue) (revenue) Number of (revenue) employees per Standard industrial classification of minor industries employees amount per amount per establishments Amount establishment (people) business employee (Million yen) (people) (10,000 yen) (10,000 yen) M Accommodations, food and beverage services 560,552 4,049,441 19,934,138 7.2 3,675 511 75 Accommodations 41,261 529,933 4,699,197 12.8 12,031 913 750 Establishments engaged in administrative or ancillary economic activities 208 2,032 - 9.8 - - (75 Accommodations) 751 (Japanese-style inn), hotels 33,852 484,270 4,340,224 14.3 13,065 911 752 Public lodging houses 1,322 6,134 28,912 4.6 2,246 482 753 Boarding houses 996 2,875 11,686 2.9 1,194 411 759 Miscellaneous lodging places 4,883 34,622 318,375 7.1 8,911 1,078 76 Restaurants 474,502 3,092,035 13,159,877 6.5 2,859 442 760 Establishments engaged in administrative and ancillary economic activities 2,045 23,650 - 11.6 - - (76 Restaurants) 761 Cafeterias and restaurants, except specialized 43,812 358,345 1,550,731 8.2 3,614 454 restaurants 762 Specialized restaurants 133,477 1,089,770 5,202,021 8.2 3,989 489 763 "" and "" (Japanese noodles) 26,228 176,877 667,598 6.7 2,578 382 restaurants 764 Sushi bars 20,265 208,296 1,003,807 10.3 5,015 494 765 Japanese pubs and beer halls 96,990 478,376 2,088,324 4.9 2,220 450 766 Bars, cabarets, night clubs 71,308 231,022 709,683 3.2 1,031 319 767 Coffee shops 57,246 254,103 893,029 4.4 1,599 359 769 Miscellaneous eating and drinking places 23,131 271,596 1,044,683 11.7 4,687 405 77 Food take-out and delivery services 44,789 427,473 2,075,064 9.5 4,817 506 770 Establishments engaged in administrative and ancillary economic activities 273 3,880 - 14.2 - - (77 Food take-out and delivery services) 771 Food take-out services 9,682 64,003 366,904 6.6 3,883 587 772 Food delivery services 34,834 359,590 1,708,160 10.3 5,079 492 N Living-related and personal services and amusement 400,095 1,839,048 35,425,077 4.6 9,101 2,009 services 78 Laundry, beauty and bath services 315,797 897,894 4,165,090 2.8 1,344 478 780 Establishments engaged in administrative and ancillary economic activities 433 2,626 - 6.1 - - (78 Laundry, beauty and bath services) 781 Laundries 47,583 240,770 1,498,303 5.1 3,233 653 782 Barbershops 95,377 184,498 472,433 1.9 500 259 783 Hair-dressing and Beauty salons 151,650 356,695 1,464,505 2.4 982 419 784 Public bathhouses 2,763 14,179 66,269 5.1 2,417 473 785 Miscellaneous public bathhouses 2,016 39,254 252,324 19.5 12,861 652 789 Miscellaneous laundry, beauty and bath 15,975 59,872 411,256 3.7 2,706 718 services 79 Miscellaneous living-related and personal services 43,068 303,161 6,575,691 7.0 16,263 2,344 790 Establishments engaged in administrative and ancillary economic activities 166 2,562 - 15.4 - - (79 Miscellaneous living-related and personal services) 791 Travel agencies 7,398 72,023 3,692,972 9.7 52,779 5,545 793 Garment sewing and repair services 5,873 17,938 45,093 3.1 788 264 794 Checkroom safety deposit services 2,459 10,605 45,443 4.3 1,991 482 795 Crematories and graveyards 887 5,332 61,070 6.0 7,672 1,249 796 Ceremonial occasions 8,619 115,765 1,914,000 13.4 24,404 1,752 799 Other unclassified services related to daily life 17,666 78,936 817,113 4.5 4,866 1,116 80 Services for amusement and recreation 41,230 637,993 24,684,296 15.5 63,379 4,041 800 Establishments engaged in administrative and ancillary economic activities 549 6,480 - 11.8 - - (80 Services for amusement and recreation) 801 Cinemas 439 12,994 205,000 29.6 47,897 1,613 802 Performances (except otherwise classified), 2,057 25,076 718,791 12.2 36,339 2,994 theatrical companies 803 Bicycle, horse, motorcar and motorboat race 638 13,180 1,795,815 20.7 289,648 14,345 track operations and companies 804 Sports facilities 11,489 230,391 1,686,841 20.1 15,447 747 805 Public gardens and amusement parks 1,242 58,231 760,544 46.9 69,203 1,373 806 Amusement and recreational facilities 14,245 204,037 18,132,046 14.3 132,651 9,299 809 Miscellaneous amusement and recreation 10,571 87,604 1,385,261 8.3 13,537 1,621 services Source: Basic Economic Census 2014 (MIC, JTA)

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Appendix-56 Share of GDP of Each Industry (2015) GDP by Economic Share of GDP Activity (%) (billion yen) Agriculture, Forestry and Fishery 5,617.5 1.1 Mining 325.3 0.1 Manufacturing 108,028.9 20.4 Food and beverages 12,606.4 2.4 Textiles products 1,392.7 0.3 Pulp / paper and paper products 1,908.1 0.4 Chemicals products 11,324.4 2.1 Petroleum / coal products 4,512.7 0.9 Ceramics / stone / clay products 2,850.4 0.5 Iron / Steel 9,868.0 1.9 Metal products 4,572.8 0.9 General purpose machinery / production machinery / 15,317.3 business oriented machinery 2.9 Electronic parts / devices 5,139.1 1.0 Electric machinery 7,256.4 1.4 Information / communication equipment 3,987.7 0.8 Transportation equipment 17,013.9 3.2 Printing 2,430.3 0.5 Miscellaneous manufacturing products 7,848.6 1.5 Electricity / gas / water supply / waste management service 14,142.7 2.7 Electricity 6,345.6 1.2 Gas / water supply / waste management service 7,797.1 1.5 Construction 29,418.9 5.5 Wholesale/retail trade 73,649.6 13.9 Wholesale 43,936.8 8.3 Retail trade 29,712.8 5.6 Transport / postal service 27,178.6 5.1 Accommodation / food and beverage services activities 13,273.9 2.5 Information and communication 26,505.1 5.0 Communication / broadcasting 12,025.3 2.3 Information services / Video picture sound information character information production and distribution 14,479.8 2.7 Finance/insurance 23,556.8 4.4 Real estate 60,429.9 11.4 Renting of dwellings 52,373.3 9.9 Other real estate 8,056.6 1.5 Professional/scientific and technical activities, business 38,613.6 support services 7.3 Public administration 26,557.6 5.0 Education 19,057.0 3.6 Human health / social work activities 36,120.4 6.8 Other services activities 23,275.3 4.4

Added value accompanying travel consumption 12,362.5 2.3

Source: Research on Economic Impact of Tourism in Japan (JTA) for added value accompanying travel consumption, and System of National Accounts (Cabinet Office) for other figures. Notes: 1. The added value accompanying travel spending has been based on the tourism satellite account, calculated by multiplying the domestic production for consumer goods and services by the percentage of the added value. 2. Pink figures indicate that the GDP of such industries fall under the ratio of the added value accompanying travel spending in GDP. 40

Appendix-57 Budget for the JTA (FY2017)

(Mil. yen) FY2017 FY2016 YoY Budget Budget Change (A) (B) (A/B) 1. Foster innovation in the tourism industry to boost its 9,382 8,867 1.06 international competitiveness Raise the level of sophistication of marketing of travel to Japan 8,701 8,283 1.05 Promotion of MICE 201 199 1.01 Human resources development support programs for the tourist 370 365 1.02 industry Enhancement/reinforcement of the tour guide-interpreter system 30 20 1.53 Spread of sound “minpaku” private house-sharing services for 70 0 New foreign tourists Enhancing information security for travel agencies 10 0 New

2. Ensure all visitors enjoy a satisfying, comfortable and 8,550 8,032 1.06 stress-free sightseeing experience Stress-free travel and stay for international visitors to Japan 8,550 8,032 1.06

3. Maximizing the attractiveness of tourism resources in 2,761 2,756 1.00 order to make tourism the basis of regional revitalization Promotional projects for forming wide-area tour routes 1,612 1,640 0.98 Support programs for branding tourist destinations 205 251 0.82 Projects to create attractiveness for tourist destinations by 270 296 0.91 leveraging local resources Project for inviting tourists by thematic tourist routes for 151 70 2.17 destinations Improving tourism statistics 522 500 1.05

4. Other (administrative costs, etc.) 342 360 0.95

Total 21,035 20,015 1.05

Reviving the Tohoku region (within the “reconstruction” framework) Reviving tourism in the Tohoku region project by enhancing overseas dissemination of Tohoku’s tourism assets 3,265 3,265 1.00 【The Subsidy for Tohoku Tourism Revival】 Sophistication of marketing travel to Tohoku 1,000 1,000 1.00 【Promotion for Tohoku tourism rivival】

Support for the recovery of tourism in Fukushima 300 266 1.13

Total 4,565 4,530 1.01

Total Sum 25,599 24,545 1.04

41

Appendix-58 Changes in the JTA Budget

100 Mil. yen 300 Allocation for Reconstruction Initial budget 250 46 45 200

150

210 100 3 6 5 5 200

127 50 101 100 97 98 99

0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

42